SEC Says Bitcoin and Ethereum Are Not Securities, Rolls Out New Token Framework

SEC Chair Paul Atkins on Tuesday delivered what he called a landmark shift in U.S. crypto policy, stating that Bitcoin, Ethereum and a wide swath of digital assets are formally outside U.S. securities laws. Speaking at the DC Blockchain Summit 2026 on March 18, Atkins introduced a new token taxonomy and an updated framework for interpreting investment contracts, which he said the agency is putting into effect immediately. "The SEC's persistent failure to provide clarity on this question is over," he told the audience. Under the framework, four categories of crypto assets are explicitly treated as non-securities: digital commodities (including Bitcoin and Ethereum), digital collectibles, digital tools, and payment stablecoins issued under the GENIUS Act. Atkins said SEC oversight would be limited to a single category: "digital securities," defined narrowly as traditional financial securities that have been tokenized and moved onto a blockchain. All other categories would sit outside the agency's jurisdiction. "We are not the Securities and Everything Commission anymore," he added. Atkins also outlined two proposed safe-harbor style fundraising paths aimed at encouraging crypto development in the U.S. One would create a time-limited startup exemption lasting up to four years, allowing early-stage projects to raise up to $5 million without full securities registration. A second exemption would permit more established projects to raise up to $75 million in any 12-month period, contingent on filing a disclosure document with the SEC detailing financial condition and audited financial statements. He said the exemptions would complement, not replace, existing capital-raising options. Despite the breadth of the announcement, Atkins stressed that lasting regulatory certainty requires congressional action. He endorsed the bipartisan Clarity Act advancing on Capitol Hill and described the SEC's "Regulation Crypto Assets" effort as a way to begin implementing the bill ahead of its expected passage. "I trust it will soon reach President Trump's desk," he said. For an industry that has spent more than a decade navigating enforcement actions and shifting interpretations, the announcement is being seen as the clearest signal yet that Washington is moving toward a more defined rulebook for crypto.