This initiative signals a potential shift toward a more coordinated regulatory structure for the crypto sector in the United States, where multiple agencies have historically shared overlapping responsibilities.

Strengthening Cooperation Between Regulators

Atkins shared the update while speaking at the FIA Global Derivatives Markets Conference in Florida. According to his remarks, the SEC intends to strengthen collaboration with the CFTC in order to improve regulatory oversight of the digital asset industry.

The proposed agreement aims to align the regulatory approach of both institutions and encourage closer coordination in policy and enforcement decisions related to cryptocurrencies.

As part of this effort, Atkins also stated that he has instructed SEC staff to begin holding joint meetings with the CFTC when reviewing applications related to new financial products involving digital assets.

Toward Joint Decision-Making

If implemented, the planned MOU could lead to coordinated decision-making across several key regulatory areas. Among the topics expected to be addressed are:

• The evaluation of financial product applications

• Interpretation of regulatory rules

• Enforcement and compliance decisions

• Investigations involving regulated companies

Such collaboration could help reduce long-standing uncertainty regarding which regulator has authority over specific types of crypto assets.

SEC and CFTC: From Regulatory Competition to Cooperation

In previous years, the SEC and CFTC were often viewed as competing regulators when it came to oversight of the cryptocurrency market. Each agency has asserted jurisdiction over different categories of digital assets and financial instruments tied to them.

However, Atkins indicated that the regulatory approach is evolving. Rather than operating in parallel or competing for oversight, the two agencies are now seeking to formalize their cooperation through a structured framework.

The SEC chairman described the SEC and the CFTC as “sister agencies” that together will oversee a large portion of cryptocurrency-related activity in the United States.

Aligned With the U.S. Crypto Strategy

Atkins’ comments also align with broader policy objectives within the United States regarding digital assets. U.S. President Donald Trump has previously expressed the ambition of turning the country into the “crypto capital of the world.”

Closer coordination between major regulatory bodies is widely seen as an important step toward achieving that goal. A unified regulatory approach could provide greater clarity for investors while also creating a more predictable operating environment for companies within the crypto industry.

As the digital asset market continues to expand, stronger cooperation between the SEC and CFTC may play a key role in shaping the future regulatory landscape for cryptocurrencies in the United States.

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SEC Chairman: “Most Crypto Tokens Are Not Securities”

One of the most striking statements of Atkins’ speech was:

“The majority of crypto tokens trading in today’s market are not securities.”

This marks a significant shift from the SEC’s previously strict stance toward the crypto sector under earlier administrations. Atkins emphasized that simply existing on a blockchain does not automatically make a token a security. Key points included:

• The SEC will continue using the Howey Test to evaluate tokens.
• However, the test will now be applied more flexibly to match the nature of digital assets.
• Tokenization does not change the fundamental nature of an asset.
  • A tokenized bond is still a bond.
  • A tokenized share is still a share.
• Calling something a “token” or “NFT” does not exempt it from regulation if it has characteristics of an investment contract.

This softer approach marks a clear departure from the previous “almost everything is a security” mindset that fueled uncertainty in the crypto industry.

A New Token Classification Framework: Two Core Principles

The SEC’s updated taxonomy is built around two foundational principles to determine how a digital asset should be regulated:

1. Tokenized traditional assets keep their original status
   • If a bond is tokenized, it remains a bond.
   • These assets continue to fall under existing securities laws.
2. Labeling something as a “token” or “NFT” does not remove it from SEC oversight
   • If investors expect profit primarily from others’ efforts, the token may be an investment contract.
   • The format of the asset does not automatically change its legal classification.

This framework is seen as a modernized extension of the Howey Test.

Tokens May Evolve Over Time

Atkins also noted that many crypto projects change significantly as they mature:

• A token may be considered a security during its early-stage sale.
• But once the network becomes sufficiently decentralized, the token may lose its security status.

This echoes the SEC’s past assessment of Ethereum, which was deemed not a security due to decentralization. Atkins illustrated the concept using an old agricultural lawsuit:

“Once the partnership ended, the farmland was no longer a security. Similarly, when decentralization is achieved, the token may cease to be a security.”

Why This Matters

These statements mark a major turning point for the crypto industry:

• Years of uncertainty and tension between the SEC and crypto companies could ease.
• Clearer guidelines on when a token is or isn’t a security will create a more predictable regulatory environment.
• Crypto exchanges will be able to structure their listing policies more consistently.
• Developers and investors gain the confidence needed to build and scale compliant projects.

Overall, this new framework could help revitalize crypto innovation in the United States. Atkins’ approach is being viewed as one of the clearest and most comprehensive regulatory stances ever adopted by the SEC toward digital assets.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

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