SEC Chair Paul Atkins Says “Very Few” Tokens Are Securities: What Is “Project Crypto”?

August 21, 2025 Adam Forsyth

The US Securities and Exchange Commission (SEC) and SEC Chair Paul Atkins are actively signalling a sharp policy turn on digital assets. On 19 August 2025, during the SALT conference in Wyoming, Atkins said that only a “very few” crypto tokens should be treated as securities. He further clarified that the tokens themselves are “probably not” securities.

According to Atkins, the classification of the tokens depends on how they are packaged and sold, which is a visible shift from the SEC’s enforcement-led posture under former Chair Gary Gensler.

“From the SEC’s perspective, we will plow forward on this idea that just the token itself is not necessarily the security. There are very few, in my mind, tokens that are securities. But it depends on what is the package around it and how that’s being sold,” said Atkins.

“I can buy an orange and I’m not necessarily buying the promise to have somebody harvest it, squeeze it and then market it and then send me the dividend,” he said. “So that’s a lot different than just buying a token in the marketplace.”

US Securities and Exchange Commission (SEC) Chair Paul Atkins suggested only a small fraction of crypto tokens should be considered securities.

SEC Commissioner Hester Peirce says "we welcome small, early-stage crypto projects to meet with us in Chicago on September 15." pic.twitter.com/8GuHQbkicU

— Jbelfort Cryptogod (@Jbelfortcrypt) August 20, 2025

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What is “Project Crypto”?

I had a great conversation with @TeresaGoody at @SALTConference’s Wyoming Blockchain Symposium today about my priorities as @SECgov chairman, including Project Crypto and making IPOs great again. It’s a new day at the SEC.

Thread pic.twitter.com/I7UIrjQFpT

— Paul Atkins (@SECPaulSAtkins) August 19, 2025

Atkins also unveiled “Project Crypto. “What is “Project Crypto”? It is SEC’s initiative to modernize digital asset oversight and bring more market infrastructure on-chain.

“Project Crypto” has been introduced as a multi-pronged program to update the SEC’s digital asset rulebook. It is expected to simplify compliance and align oversight with the realities of tokenized finance and market plumbing moving on-chain. “We must craft a framework that future proofs the crypto markets against regulatory mischief. I look forward to working with my counterparts across the Administration and Congress to get the job done,” said Atkins.

It will also be SEC’s vehicle to implement recommendations that wil enhance regulatory clarity.

The SEC Crypto Task Force will accelerate the execution of “Project Crypto.”

Explore: Up to 18 Democrats Could Back Senate Crypto Bill

SEC Will Launch President’s Digital Assets Group

On 20 August 2025, Atkins took to X to post, “The President’s Working Group on Digital Asset Markets released clear recommendations for the SEC—and we’re setting out to implement them as soon as we can.” He added, “We have a president who understands the importance of making America the crypto capital of the world.”

Atkins noted that the Group’s first task will be to implement the recommendations from the President’s Digital Asset Markets Working Group. Furthermore, Atkins clarified that “Project Crypto” was a major part of the White House’s bigger plan for digital assets.

SEC to launch the President’s Digital Assets Group.

Chair Paul Atkins says the new unit will end “regulation by enforcement” and align with the White House roadmap.

Few tokens will be treated as securities — safe harbors & tailored rules are coming.

This could be the… pic.twitter.com/tsknfCo9iG

— Jessica Gonzales (@lil_disruptor) August 20, 2025

DISCOVER: Next 1000X Crypto: 10+ Crypto Tokens That Can Hit 1000x in 2025

Key Takeaways

The SEC, under Chair Paul Atkins, is charting a more crypto-friendly regulatory course that treats the token as technology—not inherently a security—and concentrates legal analysis on how assets are offered and sold.

If the SEC follows through on Atkins’ view that only a narrow slice of tokens are securities, two practical effects could emerge. First, fewer assets would be presumptively subject to registration or exempt offering requirements. Second, the Commission’s focus would shift to the mechanics of distribution, marketing, and rights.