The chairman of the U.S. SEC proposed implementing a unified regulatory framework for encryption "super apps" and stated that "most encryption tokens are not securities."

Paul Atkins, the chairman of the U.S. Securities and Exchange Commission (SEC), recently stated in a speech at the Organisation for Economic Co-operation and Development (OECD) in France that "most cryptocurrency tokens are not securities" and proposed establishing a single, streamlined regulatory framework for "super app" platforms that provide various cryptocurrency services such as trading, lending, and staking. This move marks a significant shift in the SEC's approach to cryptocurrency regulation, aiming to provide greater certainty for the industry and drop the costs of innovation.

SEC Chairman Makes Major Remarks: Tokens Are Not Securities, Supports "Super Apps"

At the OECD roundtable held in Paris, France on September 10, SEC Chairman Paul Atkins delivered a landmark speech. He stated publicly: "We must acknowledge that the era of encryption currency has arrived," and pointed out that "most encryption Tokens are not securities."

Atkins advocates for a "single, streamlined" regulatory approach to "super application" platforms that allow users to conduct various activities such as trading, storing, lending, and staking digital assets in one place. He believes that regulators should provide "minimal effective regulation" to protect investors, but should never stifle entrepreneurship with cumbersome and redundant rules.

Promoting Regulatory Clarity: Saying Goodbye to Redundant and Repetitive Rules

Atkins' remarks stand in stark contrast to the SEC's strategy over the past decade of defining the boundaries of the encryption industry through enforcement actions. He emphasized that past uncertainty has stifled innovation and pushed talent and resources overseas. Now, the SEC's goal is to replace fragmented enforcement actions with clear, predictable rules to allow innovators to thrive in the United States.

This move is part of the SEC's "Project Crypto" initiative, aimed at bringing financial markets on-chain and providing clear "traffic rules" for market participants. The initiative is working closely with the Commodity Futures Trading Commission (CFTC) on the "Crypto Sprint" program, jointly committed to providing legal clarity for activities such as trading, custody, and record-keeping, and supporting innovation through tools like regulatory sandboxes.

In Sync with Congressional Legislation Process: Balancing Regulatory Pace

Atkins' statement comes at a time when the U.S. Congress is actively advancing the Republican-led cryptocurrency market structure bill. This bill aims to clearly define which tokens are considered securities and which are commodities, and to delineate the regulatory responsibilities between the SEC and the CFTC.

However, not everyone within the SEC agrees with this rapid shift. SEC Commissioner Caroline A. Crenshaw has called on her colleagues to take a more cautious approach to ensure the correctness of rule-making and to avoid unforeseen consequences due to hasty actions. This reflects the differing opinions within the U.S. encryption regulatory space regarding the trade-off between the speed and quality of regulation.

Conclusion

The proposal from SEC Chair Atkins represents a significant shift in the agency's stance on cryptocurrency regulation, moving from a previously enforcement-driven tough approach to a more pragmatic and streamlined path. Although the formal rule-making process in the future may be fraught with challenges, this shift is expected to usher in a new era of regulatory clarity and innovation for the U.S. crypto industry.