Author: Sam Bourgi
Compiled by: Deep Tide TechFlow
Deep Tide Introduction: SEC Chairman Paul Atkins further explained in a CNBC interview why NFTs generally do not constitute securities. The SEC recently released an interpretive document listing four categories of digital assets that are not securities: digital commodities, digital instruments, digital collectibles (including NFTs), and stablecoins.
Atkins compared NFTs to baseball cards, emphasizing that such assets are "bought and held" and do not involve investment contracts. This is the latest move by the SEC under Atkins' leadership to shift from "enforcement-driven" to "guidance-driven" regulation.
Full text as follows:
After the U.S. Securities and Exchange Commission (SEC) listed four major categories of digital assets not subject to securities laws, Chairman Paul Atkins further explained why non-fungible tokens (NFTs) generally do not meet the definition of securities.
In a CNBC interview on Wednesday, Atkins reiterated the four categories of digital assets identified in the SEC's recent interpretive document that are typically not considered securities: digital commodities, digital instruments, digital collectibles like NFTs, and stablecoins.
During the interview, host Andrew Ross Sorkin pressed the issue of digital collectibles, noting that depending on their structure, they could more easily be classified as securities.
Atkins responded, "That's true of anything." He emphasized that the SEC's analysis still depends on the specific facts and circumstances of each asset, particularly whether it involves an investment contract under long-standing legal precedent.
Atkins stated that digital collectibles are generally viewed as items to be bought and held, similar to physical collectibles, rather than investment contracts. Investment contracts are a core defining feature of securities.
He said, "These collectibles, like baseball cards, memes, memecoins, NFTs, are things someone buys. It's an immutable purchase...unlike other assets that people trade."
Caption: Paul Atkins interviewed on CNBC. Source: CNBC
SEC Continues to Move Away from "Enforcement-Driven" Crypto Policy
Under Atkins' leadership, the SEC's approach to regulating digital assets has undergone a noticeable adjustment. This shift coincides with the Trump administration, which is more crypto-friendly and took office in early 2025.
Atkins said in the CNBC interview, "We are breaking with the past." He described the SEC's efforts to promote clearer guidance and a more predictable regulatory framework.
Last year, Atkins criticized the SEC's previous reliance on "regulation by enforcement" and promised to move away from this approach. He also noted that tokenization is a key innovation that regulators should support rather than restrict.
Since then, he has repeatedly stated that past regulatory missteps have set the U.S. back by as much as a decade in crypto development and vowed to reverse this situation.
