November 14, 2025

On November 12, 2025, SEC Chairman Paul S. Atkins delivered a speech at the Federal Reserve Bank of Philadelphia, detailing the agency’s strategy for digital assets under “Project Crypto.” Atkins highlighted that Project Crypto extends the foundational efforts of Commissioner Hester Peirce, whose Crypto Task Force advocates for regulations based on economic realities rather than hype or apprehension. He commended Peirce’s dedication and their collaborative history, underscoring her pivotal role in advancing these reforms.

The speech revolved around three key themes: establishing a transparent token taxonomy, applying the Howey test to acknowledge that investment contracts can terminate, and exploring real-world impacts on creators, brokers, and investors.

Atkins strongly endorsed Congressional initiatives to legislate a holistic crypto market structure, positioning the SEC’s work as supportive rather than overriding. He noted productive partnerships with Acting CFTC Chairman Pham and nominee Mike Selig, advocating for rapid enactment of bipartisan laws to safeguard against unpredictable regulation.

Atkins lamented a decade-long haze of ambiguity surrounding whether crypto assets qualify as securities, pointing out that “crypto asset” describes technology for record-keeping and value transfer but reveals scant about legal entitlements or transactional economics, which are essential for securities classification. He contended that the majority of circulating tokens may not be securities inherently, though some may have originated in investment contract offerings. “Investment contract” should not be thought of as an indelible tag on a digital asset.

“Investment contracts can be performed and they can expire. They do not last forever simply because the object of an investment contract continues to trade on a blockchain”

Two foundational principles shape his perspective: traditional securities like stocks or bonds retain their nature irrespective of blockchain representation, and substantive economics override nomenclature. Labeling an asset as a token or NFT offers no exemption if it fundamentally pledges returns from others’ endeavors; likewise, a token’s fundraising inception does not perpetually deem it a security.

Atkins sketched a preliminary, non-comprehensive token classification. Digital commodities or network tokens escape securities designation when tied to operational, decentralized systems, deriving worth from network mechanics rather than external management. Digital collectibles, meant for gathering or utilization and embodying art, media, or trends, lack profit expectations from issuers. Digital tools, fulfilling roles like memberships or credentials, similarly evade securities status absent reliance on others’ efforts. Conversely, tokenized securities, mirroring listed financial instruments on blockchains, stay regulated as such.

Chair Atkins’ full speech can be found here.

The post “Chair Atkins Describes the SEC Approach to Digital Assets” first appeared on DigitalAsset.Law on November 14, 2025.