Chairman Paul Atkins: Many types of crypto ICOs fall outside the scope of SEC regulation.

Former SEC Chair Paul Atkins said on Tuesday that many ICOs should be treated as non-securities transactions and fall outside SEC oversight. Speaking at the Blockchain Association’s policy summit, he reiterated his new token classification framework, which divides crypto assets into four categories. He argued that three of them—network tokens, digital collectibles, and digital tools—should not be viewed as securities, and ICOs involving these tokens should be regulated by the CFTC instead of the SEC. Only tokenized securities, which represent traditional regulated assets, should remain under SEC jurisdiction.

His comments arrive as the SEC temporarily halts reviews of high-leverage crypto ETF applications, citing investor risk. The shift could reopen the door for token fundraising, echoing the 2017 ICO boom before the SEC cracked down on unregistered sales. Atkins noted that most crypto tokens under his framework would escape SEC control, potentially accelerating a new wave of ICOs as major players like Coinbase roll out issuance platforms.

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