SEC interpretation on crypto laws ‘a beginning, not an end,‘ says Atkins

The SEC chair signaled that the agency would defer to a market structure bill if passed by Congress, but needed a ”bridge” to clarify crypto regulation.

US Securities and Exchange Commission (SEC) Chair Paul Atkins has clarified how the agency intends to approach digital asset regulation following an interpretative notice issued this week.

In prepared remarks for a Thursday speech at the Practising Law Institute, Atkins said that the SEC would take a different approach to digital assets than its previous “regulation by enforcement” campaign. According to the SEC chair, the agency would first focus on its interpretation of how federal securities laws apply to crypto following the signing of a memorandum of understanding with the Commodity Futures Trading Commission (CFTC) last week.

“[...] While the interpretation provides long-needed clarity, I should like to assure this audience that it amounts to a beginning, not an end,” said Atkins.

The agency’s interpretation, released on Tuesday, specified that most cryptocurrencies were likely not securities under federal law, with the chair telling attendees at the DC Blockchain Summit that “only one crypto asset class remains subject to the securities laws” under the agency’s interpretation: namely, “traditional securities that are tokenized.”

Atkins later clarified that digital commodities, digital tools, digital collectibles including non-fungible tokens (NFTs), and stablecoins were digital assets typically not falling under the SEC’s purview.

Related: SEC gives go-ahead to Nasdaq for tokenized trading trial

While the SEC interpretation could significantly change how the agency approaches crypto regulation and enforcement, a market structure bill working its way through Congress is also expected to give the CFTC more authority in regulation and oversight of digital assets. The bill, called the CLARITY Act when it passed the House of Representatives in July 2025, had not been scheduled for a markup in the Senate Banking Committee as of Thursday.

A spokesperson for Wyoming Senator Cynthia Lummis confirmed with Cointelegraph that Republican senators met with White House crypto adviser Patrick Witt on Thursday to discuss advancing the market structure bill. While the Senate Agriculture Committee advanced its version of the legislation in January, concerns over how to address stablecoin yield in the crypto and banking industry have effectively stalled progress in the Senate Banking Committee.

According to Lummis’ team, the meeting was “very productive and positive,” adding that lawmakers were “99% of the way there on stablecoin yield,” and “negotiations on the digital asset portions of the bill are in a good place.”

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Source: CoinTelegraph