US Securities and Exchange Commission Chair Paul Atkins addressed the agency’s approach to digital asset enforcement during a Wednesday speech at the Federal Reserve Bank of Philadelphia. He outlined how the SEC plans to modernize its regulatory framework under Project Crypto and upcoming legislation in Congress.
Atkins noted that the SEC is considering establishing a “token taxonomy,” anchored in the Howey test, to identify when an investment contract ends. “Commissioner Peirce has rightly observed that while a project’s token launch might initially involve an investment contract, those promises may not remain forever,” Atkins said. Once an investment contract concludes, trades of the token may continue without being considered securities transactions.
He clarified that digital commodities, digital collectibles, network tokens, and digital tools would generally fall outside the SEC’s jurisdiction, whereas “tokenized securities” would remain regulated.
Tailored offerings and fraud enforcement
Atkins suggested that future legislation could allow the SEC to implement exemptions creating a tailored offering regime for crypto assets tied to investment contracts. “Fraud is fraud,” he emphasized, adding that the SEC would continue to protect investors from securities fraud, while other federal agencies handle illicit conduct in areas beyond securities.
Market structure bill progress
Despite a US government shutdown extending over 40 days, lawmakers are moving forward with a market structure bill. The House of Representatives is expected to vote on a government funding bill to last through January, which the Senate has already passed.
Senate negotiations continued during the shutdown, with Republican leaders releasing a discussion draft of the market structure bill through the Senate Agriculture Committee. The legislation seeks to define clear regulatory responsibilities for the SEC and CFTC over digital assets, signaling progress in establishing a structured framework for crypto oversight in the United States.