U.S. Securities and Exchange Commission Chair Paul Atkins told the Practising Law Institute on Thursday that the crypto asset interpretive order issued earlier this week is "not the finish line, but the starting line." He acknowledged that while the order provides much-needed clarity, only congressional legislation can lock in the regulatory direction.
Interpretive Order Red Line: Only Tokenized Traditional Securities Under SEC Jurisdiction
Under the new framework, only tokenized traditional securities remain subject to securities laws, according to Atkins' remarks at the DC Blockchain Summit. Digital commodities, NFTs, digital tools, and stablecoins are all excluded from SEC oversight. The agency will shift from enforcement-driven regulation to focusing on how federal securities laws apply to crypto assets, operating under a recent cooperation memorandum with the CFTC.
For issuers awaiting ETF approvals — particularly for SOL, XRP, and DOGE — the framework removes the core legal question of whether these tokens are securities. The main regulatory barrier is now effectively gone, leaving only procedural timelines.
White House Intervention: Stablecoin Bill "99% There"
A separate development on the same day drew more attention: Republican senators met with White House crypto advisor Patrick Witt to discuss the market structure bill's progress. A spokesperson for Senator Cynthia Lummis described the meeting as "very productive and positive," with 99% consensus reached on the stablecoin yield issue and digital asset legislation making headway.
The only remaining sticking point: whether stablecoins can pay yield to holders. Traditional banks fear that 4-5% yields would drain deposits, while the crypto industry argues yields are natural interest from underlying assets like Treasuries and that restrictions amount to discriminatory regulation.
Executive Order vs. Legislation: The Shelf Life of Clarity
A widely underestimated risk: Atkins' order is an executive interpretation, not a statute. It can be overturned by a future SEC chair on day one. That's why Atkins stressed "just a start" — without congressional authorization, the regulatory philosophy remains fragile.
The CLARITY Act passed the House in July 2025, establishing that "functional and decentralized" assets fall under CFTC jurisdiction. But the Senate Banking Committee has yet to schedule a hearing, leaving full legislative authority in limbo.
This week's developments — SEC jurisdiction contraction, altcoin ETF legal clarity, stablecoin bill progress, and White House mediation — are seen by the market as a systemic improvement in the regulatory environment. But binding change hasn't arrived yet: the order can be reversed, CLARITY Act is stuck in the Senate, and the final 1% of the GENIUS stablecoin bill may prove the hardest. Atkins calling this a "start" is both modesty and reality.