Securities regulatory body rethinks stance on cryptocurrencies: "Few crypto assets classified as securities"
The United States Securities and Exchange Commission (SEC) is positioning itself as an institution ready to tackle the challenges of the 21st century, particularly in the realm of cryptocurrency, with a new regulatory approach. Under the leadership of Paul Atkins, the current President of the SEC, this shift could mark a significant turning point for the U.S. crypto ecosystem.
Atkins proposes abandoning the traditional "regulation by enforcement" approach and moving towards regulation based on explicit, understandable rules adapted to the nature of crypto assets. This shift breaks from the stance held by his predecessor, Gary Gensler, who expressed the view that "very few crypto tokens are securities" at the Wyoming Blockchain Symposium.
The SEC's new stance, if it consolidates, could unlock a wave of innovation in the U.S. crypto ecosystem by reducing legal ambiguity. The new approach introduces a fundamental distinction between digital assets and the context of their issuance or marketing. This distinction could lead to clearer, more proactive, and less punitive regulation.
The SEC's internal agency initiative, Project Crypto, aims to define functional categories of tokens, establish transparency criteria, and create oversight mechanisms not solely reliant on the Howey test. The project seeks to establish the SEC's own regulatory framework for the crypto sector, parallel to legislative efforts like the CLARITY Act project.
For users, this regulatory clarity implies greater predictability in project evolution. For investors, it could translate to a more diverse and robust range of Web3 solutions. With regulatory clarity, fewer resources would be devoted to legal defense and more investment could be made in technological development.
The SEC's new approach could reposition the United States as a competitive environment for the development of decentralized technologies. The impact of the SEC's stance extends to the international plane, potentially influencing other regulators.
Under Atkins' proposal, the classification of tokens as securities will depend on factors such as the project's structure, the type of promise made to the buyer, and the token's use within the ecosystem. Atkins has declared that very few crypto tokens are securities.
The SEC's new approach could lead to a more nuanced analysis that considers the context of issuance, the functionality of the token, and its relationship with users. This shift in stance could have profound implications for the Web3 ecosystem, potentially fostering a more vibrant and innovative digital asset market in the U.S. and beyond.
