When crypto first hit the scene, global regulators were caught like deer in the headlights, confused and uncertain how to manage digital assets. Rules were effectively drawn from laws enacted before the internet was a dream, and in the US, the touchstone, the Howey Test on securities, provided a confusing path to regulation.
Where the first Trump Administration struggled to adapt (but made an effort), the Biden Administration took a more detrimental approach by deeming all crypto bad, toying with innovators, telling them to come in and discuss, while asking them to register (which they couldn’t do), presenting an SEC as a dystopian regulatory debacle that can only be described as incompetent.
Today, during Trump Part 2, things are different: the SEC is tackling a tall challenge but embracing the project, understanding that digital assets are the future. While Congress has failed to pass a law, the CLARITY Act (crypto market infrastructure legislation) to provide regulatory coherence, the SEC is marching forward, conducting public meetings, asking for feedback, and providing guidance that, in the end, will emerge as the most significant change to securities law since the 33 Act. It will also provide guidance to the rest of the world.
This week, the SEC published guidance on crypto assets.
“After more than a decade of uncertainty, this interpretation will provide market participants with a clear understanding of how the Commission treats crypto assets,” said SEC Chairman Paul S. Atkins.
Addressing the DC Blockchain Summit, Atkins declared that after the “SEC’s persistent failure to provide clarity,” they are implementing a token taxonomy and investment contract interpretation.
The Chairman explained that they established four asset categories that are not deemed securities: digital commodities, digital collectibles, digital tools, and payment stablecoins under the GENIUS Act.
“We are not the Securities and Everything Commission,” stated Atkins as he highlighted that their mission is to regulate securities.
We are not the Securities and Everything Commission, stated Atkins
While Congress continues to dither, Atkins said that future proofing digital assets from another rogue regime requires legislation.
“I strongly support the ongoing bipartisan efforts on Capitol Hill to establish a durable framework for these markets.”
The Chairman Atkin’s vision for “Regulation Crypto Assets” was shared as follows:
- A fit-for-purpose “startup exemption,” which would be a time-limited registration exemption for offerings of investment contracts involving certain crypto assets.
- The Commission could consider a “fundraising exemption,” a new offering exemption for investment contracts involving certain crypto assets. Entrepreneurs could raise up to a defined amount while providing principles based disclosure.
- The Commission to consider an “investment contract safe harbor” from the definition of “security” for certain crypto assets. This safe harbor could apply once the issuer has completed or otherwise permanently ceased all essential managerial efforts that it represented or promised to engage in under the investment contract.
As many questions remain about crypto assets, which can have diverse characteristics, Chairman Atkins stated on CNBC today that they will provide various examples to help issuers and lawyers pursue offerings with certainty.
A digital asset sandbox is in the queue as well.
Atkins tipped his hat to Commissioner Hester Peirce, the trailblazer in regard to championing clarity on digital assets and the leader of the SEC Crypto Task Force. “We would not be here today but for your efforts,” stated Atkins. Peirce proposed a safe harbor for crypto years ago.
Our interpretation on crypto assets—grounded in existing law and informed by extensive public input—acknowledges what the former administration refused to recognize…
Most crypto assets are not themselves securities.pic.twitter.com/fbHan0vmmb
— Paul Atkins (@SECPaulSAtkins) March 17, 2026
A public release of the Commission’s proposal is forthcoming and will seek comments from interested parties.
While the path to digital asset regulation has been too long and excessively difficult, there is light at the end of the tunnel. Crypto innovation is growing in the US and, as the Administration desires, the US is on a path to lead the world in the future of finance.
