On August 20, SEC Chairman Paul Atkins announced that most crypto tokens will not be classified as securities. This decision signals a significant regulatory shift.
Atkins' Announcement Reclassifies Crypto Tokens
In a pivotal move, SEC Chairman Paul Atkins announced that most crypto assets will not be classified as securities. This shift aligns with his pro-market stance and is supported by Commissioner Hester Peirce through 'Project Crypto.' This change reduces SEC jurisdiction over crypto tokens, including Bitcoin and Ethereum, attracting positive feedback from crypto advocates. By planning safe harbor provisions and exemptions, the SEC aims to foster innovation while ensuring clarity.
SEC's New Strategy Sparks Market Optimism
Under Chairman Gary Gensler, the SEC classified most tokens as securities, enforcing strict regulations. This led to many enforcement actions and a risk-averse market environment. However, changes under Atkins have resulted in rising optimism among investors. Bitcoin (BTC), currently priced at $113,104.83 with a market cap of $2.25 trillion, has seen a slight decline of 3.30% over the past month, yet a 9.49% increase over the 60 days.
Future Prospects for Cryptocurrencies in the U.S.
The Coincu research team suggests that a more predictable regulatory environment might encourage substantial inflows of institutional capital into the crypto market. They foresee potential growth in market innovation and a more dynamic financial landscape for U.S.-based crypto businesses.
Paul Atkins' announcement regarding the reclassification of crypto tokens may lead to improved investment climate and stimulate innovation in digital asset development in the U.S.
