SEC chair Gary Gensler announces policy shift on Altcoin securities debate

A pivotal moment in U.S. crypto regulation has emerged as SEC Chairman Paul Atkins addressed the long-debated issue of which altcoins are securities, signaling a narrowing scope for tokens likely to fall under securities laws.

Speaking at the Wyoming Blockchain Symposium in Jackson Hole, Atkins emphasized that only a limited number of cryptocurrencies meet the criteria, a shift that could reshape compliance standards and market strategies across the digital asset sector.

Atkins’ position marks a departure from the approach of his predecessor, Gary Gensler, who frequently argued that the majority of tokens fell under securities laws via the Howey test. Instead, Atkins emphasized that the SEC will assess token classifications on a case-by-case basis, signaling a potentially more favorable environment for the crypto industry.

“We cannot necessarily treat all cryptocurrencies as securities,” Atkins said. “The SEC will now proceed with the assumption that the crypto token itself is not a security. At this point, I think there are very few tokens that are securities.”

A break from Gensler’s broad interpretation

For years, the central regulatory dispute in the U.S. has revolved around which altcoins are securities under federal law. Former SEC Chair Gary Gensler consistently argued that most tokens met the legal threshold, subjecting them to strict investor protection and disclosure requirements.

By contrast, Atkins’ statements highlight a narrower interpretation. He stressed that the method of sale and accompanying regulations matter more than the token’s technical design.

“How a token is sold and the regulations surrounding it are more important than the token itself,” Atkins noted.

This shift aligns with broader changes under President Donald Trump’s administration, including the controversial decision to establish a U.S. national Bitcoin reserve. Together, these moves point to a recalibration of federal policy on digital assets.

Implications for investors and markets

For crypto investors, the question of which altcoins are securities has profound implications. A classification as a security often subjects a token to additional compliance burdens, legal risks, and trading restrictions. By narrowing the scope, the SEC may reduce uncertainty and open pathways for innovation.

“Subsidizing crypto mining risks distorting energy markets,” an International Monetary Fund (IMF) spokesperson warned earlier this year, pointing to broader concerns about regulatory consistency across jurisdictions. While the IMF’s focus was on energy use, the SEC’s shift could spark similar global debates about how different regulators interpret crypto classifications.

Industry participants welcomed Atkins’ remarks. “This could be the beginning of a more rational framework,” said Katherine Wu, a blockchain policy analyst at Coin Metrics. “Investors have long been waiting for clarity on which altcoins are securities, and narrowing the definition could encourage healthier market growth.”

What comes next for regulation

Atkins also referenced the SEC’s ongoing “Crypto Project,” an internal initiative aimed at modernizing oversight of digital assets. The project is expected to publish new guidelines later this year, potentially offering formal answers to the question of which altcoins are securities in U.S. law.

Analysts caution that while Atkins’ approach signals leniency, legal battles over token classifications are far from over. Federal courts have already issued differing rulings in cases involving XRP and other tokens, and Congress has yet to pass comprehensive crypto legislation.

For now, Atkins’ remarks set a new tone at the SEC — one that shifts the burden away from assuming every altcoin is a security. The move may not resolve all disputes, but it could reshape how the agency, investors, and the industry approach compliance in the months ahead.

As policymakers continue to debate which altcoins are securities, the stakes remain high for global markets, innovation in blockchain technology, and the future role of the United States in digital finance.