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SEC chair says most tokens are not securities, backs ‘super-app’ platforms

US Securities and Exchange Commission (SEC) Chair Paul Atkins said that “most crypto tokens are not securities,” while outlining a sweeping plan to integrate crypto activities like trading, lending and staking under a unified regulatory framework.

“It is a new day at the SEC,” Atkins said during a keynote address at the Organization for Economic Cooperation and Development (OECD) Roundtable in Paris on Wednesday.

“Policy will no longer be set by ad hoc enforcement actions,” he added, contrasting the previous administration’s aggressive crackdown on crypto firms. “We will provide clear, predictable rules of the road so that innovators can thrive in the United States,” Atkins said.

Under the Project Crypto initiative, the SEC aims to modernize its securities regulations to accommodate blockchain-based financial markets. According to Atkins, the President’s Working Group on Digital Asset Markets has already delivered a “bold blueprint” to support this mission.

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Paul Atkins gives remarks on Project Crypto. Source: SEC

SEC opens door to crypto “super-apps”

The SEC’s updated strategy includes allowing platforms to operate as “super-apps” that can facilitate trading, lending and staking of digital assets under one regulatory umbrella. Atkins said that these platforms should also have the flexibility to offer multiple custody solutions.

“I believe regulators should provide the minimum effective dose of regulation needed to protect investors, and no more,” Atkins stated. “We should not overburden entrepreneurs with duplicative rules that only the largest incumbents can bear.”

Atkins also praised the European Union’s Markets in Crypto-Assets (MiCA) framework, saying it provides “a comprehensive digital assets regime” and noted that US policymakers could learn from Europe’s early regulatory steps.

The SEC chief called for international cooperation to “facilitate more innovative markets.” “Working together, as Alexandre de Tocqueville might have put it, we can ‘extend the sphere’ of freedom and prosperity,” he concluded. 

EU tightens crypto grip for banks

Last month, the European Banking Authority (EBA) finalized rules that will require EU-based banks to hold significantly more capital against unbacked cryptocurrencies like Bitcoin and Ether . These draft regulatory standards are now pending review by the European Commission.

Under the proposed framework, unbacked digital assets such as Bitcoin fall into “Group 2b” and carry a hefty 1,250% risk weight, meaning banks must set aside a substantial capital buffer.

The EBA’s conservative approach contrasts with moves in other jurisdictions. In the US, the FDIC now allows supervised banks to engage in crypto activities without prior approval, while Switzerland has updated its DLT laws to support crypto custody and stablecoin guarantees. 

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Cointelegraph Team

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SEC chair says most tokens are not securities, backs ‘super-app’ platforms