New SEC Position May Reignite ICO Boom as Chair Paul Atkins Declares Most Tokens Are Not Securities

Regulatory Shift: SEC Chair Paul Atkins has proposed that many crypto tokens, including network tokens and digital collectibles, should not be classified as securities, potentially allowing the CFTC to take on greater oversight of the crypto market.

New Token Taxonomy: Under Atkins' "Project Crypto," a new framework aims to clarify which digital assets fall under SEC jurisdiction, suggesting that only tokenized securities will remain regulated by the SEC, while most other tokens would be overseen by the CFTC.

Impact on ICO Fundraising: The proposed changes could lead to a revival of ICO-style fundraising in the U.S., as many tokens may be categorized as commodities, allowing issuers to bypass SEC registration requirements.

Innovation and Clarity: If implemented, Atkins' regulatory approach could enhance domestic innovation in the crypto space by providing clearer guidelines for builders, exchanges, and investors, contrasting with the previous administration's enforcement-driven policies.