NEW YORK, March 24 — Chairman Paul S. Atkins said Tuesday, according to SEC remarks, that the U.S. Securities and Exchange Commission’s recent interpretation of federal securities laws as applied to crypto assets represents a starting point rather than a final regulatory framework.
Speaking at the Digital Asset Summit, Atkins said the Commission’s recent actions are intended to provide clarity to market participants on when crypto assets fall within the scope of federal securities laws.
The remarks follow the Commission’s recent interpretation on how securities laws apply to digital assets, including a token taxonomy and application of the Howey test.
Framework distinguishes five categories of digital assets
According to remarks published by the U.S. Securities and Exchange Commission, the framework distinguishes between five categories of digital assets, four of which are not considered securities.
Atkins said the interpretation clarifies the contours of an investment contract and provides guidance for market participants seeking to determine when fundraising involving crypto assets may implicate securities laws.
SEC positions framework as initial step
Atkins said the Commission’s interpretation “is not an endpoint so much as a foundation,” indicating that further regulatory development is expected.
He said the agency’s actions are intended to return the SEC to its statutory role of overseeing securities transactions involving investors.
Congress seen as key to broader framework
Atkins said that only Congress can establish a comprehensive regulatory framework capable of addressing the evolving digital asset market.
He said the SEC’s role is to provide clarity within the bounds of existing law while lawmakers consider broader market structure legislation.
