SEC Chair Paul Atkins clarified the agency’s approach to digital asset regulation after an interpretative notice issued this week, saying the guidance is “a beginning, not an end.” In prepared remarks at the Practising Law Institute, Atkins said the SEC will move away from a prior “regulation by enforcement” approach and first focus on interpreting how federal securities laws apply to crypto, following a memorandum of understanding with the Commodity Futures Trading Commission (CFTC).
The SEC’s interpretation, released Tuesday, indicated that most cryptocurrencies are likely not securities under federal law. Atkins told attendees at the DC Blockchain Summit that only one crypto asset class remains subject to securities laws under the agency’s view: traditional securities that are tokenized. He clarified that digital commodities, digital tools, digital collectibles (including NFTs), and stablecoins are typically not within the SEC’s purview.
While the interpretation could shift how the SEC regulates and enforces crypto rules, a market structure bill in Congress could also reshape oversight by giving the CFTC more authority over digital assets. The bill—known as the CLARITY Act when it passed the House in July 2025—had not been scheduled for markup in the Senate Banking Committee as of Thursday.
Lawmakers and the White House continue private negotiations. A spokesperson for Wyoming Senator Cynthia Lummis confirmed Republican senators met with White House crypto adviser Patrick Witt to discuss advancing the market structure bill. The Senate Agriculture Committee advanced its version in January, but the Senate Banking Committee has stalled amid concerns over addressing stablecoin yield in the crypto and banking sectors. Lummis’ office described the meeting as “very productive and positive,” saying lawmakers are “99% of the way there on stablecoin yield” and that negotiations on the digital asset portions are “in a good place.”
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