SEC Chair Atkins: Crypto Regulation Interpretation Is Just the Start

By WSN Editorial TeamTech ReporterMarch 19, 20263 min readUpdated 1 hour ago

SEC Chair Paul Atkins outlines a new approach to crypto regulation, emphasizing that the agency's interpretation is an initial step amid ongoing legislative efforts.

U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins stated in prepared remarks that the agency's recent interpretation of federal securities laws for digital assets marks a starting point, not a conclusion. This interpretation, released on Tuesday, shifts away from the SEC's previous 'regulation by enforcement' strategy.

SEC's Interpretation of Crypto Assets

Atkins specified that most cryptocurrencies do not qualify as securities under federal law. He noted that only tokenized traditional securities remain subject to SEC oversight, while digital commodities, digital tools, digital collectibles like non-fungible tokens (NFTs), and stablecoins typically fall outside the agency's jurisdiction.

This clarification follows a memorandum of understanding signed last week between the SEC and the Commodity Futures Trading Commission (CFTC), aiming to better define regulatory boundaries for digital assets.

The SEC's approach could influence future enforcement actions, with Atkins emphasizing the need for a 'bridge' to clarify crypto regulation until Congress acts.

Legislative Developments

A market structure bill, known as the CLARITY Act, passed the House of Representatives in July 2025 and is expected to grant the CFTC more authority over digital assets. As of Thursday, the bill had not been scheduled for markup in the Senate Banking Committee.

Republican senators met with White House crypto adviser Patrick Witt on Thursday, describing the discussion as productive. Lawmakers reported being '99% of the way there' on issues related to stablecoin yield and indicated that negotiations on digital asset portions of the bill are advancing positively.

This meeting underscores ongoing efforts to resolve regulatory hurdles in the crypto and banking sectors, potentially reshaping oversight of digital assets in the U.S.