Key Insights:
- SEC says some digital assets are outside its control, easing pressure on crypto developers.
- Utility-based tools and NFTs may not be securities, offering legal clarity for blockchain projects.
- Institutional interest in crypto may grow as the SEC separates some tokens from investment products.
The U.S. Securities and Exchange Commission (SEC) has announced a new stance on certain digital assets. SEC Chair Paul Atkins said some Initial Coin Offerings (ICOs), NFTs, and utility-based digital tools may not fall under the agency’s jurisdiction.
ICOs and Utility Tokens May Not Be Subject to SEC Rules
SEC Chair Paul Atkins stated that certain blockchain-based assets may not meet the legal definition of securities. These include ICOs linked to decentralized networks, utility tokens, and digital collectibles. The statement was made during a recent public address.
🚨 JUST IN: SEC CHAIR ATKINS SAYS CERTAIN ICOs, NFTS & DIGITAL TOOLS ARE NOT SEC SECURITIES
SEC Chair Paul Atkins clarified that ICOs tied to network tokens, digital collectibles, or utility-focused digital tools aren’t securities and fall outside the SEC’s direct oversight.… pic.twitter.com/DeKQnH4b5G
— CryptosRus (@CryptosR_Us) December 10, 2025
Atkins explained that digital tools with clear non-financial use may operate outside traditional securities rules. He noted that the SEC would not treat every blockchain-based product as an investment contract. “Not all digital offerings are securities,” he said. “Many are simply tools or collectibles with use cases.”
Clarification May Lower Regulatory Risk
The clarification may reduce the risk of regulatory action against developers offering such tools. It also helps separate investment products from those used for other digital services. This approach could affect how new blockchain projects are structured.
The SEC chair emphasized the need for balance in enforcement highlighting that the agency must not block innovation when no investor protection risk exists. The SEC will still monitor offerings that promise profits or behave like investment vehicles.
Market Reaction and Institutional Interest
Following the remarks, some analysts expect renewed interest from institutions. Clearer rules around what is not a security may bring more stability to the space. Market participants may feel more confident about long-term involvement.
This development comes as large investors continue to watch the sector for legal updates. The lower risk of enforcement could drive inflows into Bitcoin and other major digital assets. However, some legal experts say the SEC’s position may still face court challenges.
