SEC Chair Paul Atkins described the agency’s new interpretative notice on digital assets as “a beginning, not an end,” outlining a shift in how the Commission will approach crypto regulation. Speaking at the Practising Law Institute, Atkins said the SEC intends to move away from a period of “regulation by enforcement” and will prioritize clarifying how existing federal securities laws apply to digital assets after formal coordination with the Commodity Futures Trading Commission (CFTC).
The interpretative release published Tuesday signals that most cryptocurrencies are unlikely to be treated as securities under federal law. Atkins told attendees at the DC Blockchain Summit that, in the SEC’s view, the only crypto category clearly subject to securities rules is tokenized versions of traditional securities. By contrast, the agency generally does not consider digital commodities, utility-style digital tools, digital collectibles (including many NFTs), and stablecoins to fall within its securities jurisdiction.
While the interpretation may change how the SEC enforces rules against crypto firms, congressional action could also redefine oversight. A market-structure proposal that passed the House as the CLARITY Act in July 2025 would expand the CFTC’s authority over many digital assets; however, the bill had not been scheduled for markup in the Senate Banking Committee as of Thursday.
Lawmakers and the White House continue private discussions. A spokesperson for Senator Cynthia Lummis said Republican senators recently met with White House crypto adviser Patrick Witt to press the bill forward. The Senate Agriculture Committee advanced its version in January, but progress in the Senate Banking Committee has been slowed by debate over how to treat stablecoin yield in the crypto and banking sectors. Lummis’ office described talks as very productive, saying negotiators are close to resolving stablecoin yield issues and that the digital asset provisions are largely settled.
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