Jackson Hole, WY – August 21, 2025 – In a significant shift in U.S. regulatory policy, Securities and Exchange Commission (SEC) Chair Paul Atkins declared that “very few” cryptocurrency tokens should be classified as securities, marking a departure from the aggressive enforcement stance of his predecessor, Gary Gensler. Speaking at the Wyoming Blockchain Symposium on August 19, 2025, Atkins emphasized that the SEC is adopting a more innovation-friendly approach through its new initiative, Project Crypto, aimed at modernizing securities laws for blockchain-based markets. This development, coupled with ongoing wildfire litigation challenges in California, highlights the evolving intersection of law, finance, and technology.
A New Era for Crypto Regulation
Atkins’ remarks signal a pivotal change in how the SEC views digital assets. Unlike Gensler, who argued that the “vast majority” of crypto tokens met the Howey Test criteria for securities—requiring investment of money in a common enterprise with an expectation of profits from others’ efforts—Atkins stated that tokens themselves are “probably not” securities. “There are very few, in my mind, tokens that are securities, but it depends on what’s in the package around it and how that’s being sold,” Atkins said, using an analogy of buying an orange without expecting dividends from its harvest. This approach focuses on the context of token offerings, such as marketing and associated promises, rather than blanket classifications.
The SEC’s Project Crypto initiative, unveiled at the symposium, aims to create a clear regulatory framework that supports blockchain innovation while protecting investors. Atkins highlighted the need to move away from “regulation by enforcement,” a strategy that led to lawsuits against major crypto firms like Coinbase and Ripple Labs under Gensler. Project Crypto will implement recommendations from the President’s Digital Asset Markets Working Group, which recently issued a 166-page report calling for regulatory clarity. The initiative includes tailored disclosures, exemptions, and safe harbors for token offerings like initial coin offerings (ICOs), airdrops, and network rewards, potentially reducing compliance costs and encouraging U.S.-based innovation.
The recent resolution of the SEC’s four-year lawsuit against Ripple Labs, finalized in August 2025 with both parties dismissing appeals, underscores this shift. Atkins noted that the end of the Ripple case allows the SEC to focus on policy formulation rather than litigation, aligning with the Trump administration’s goal of making the U.S. the “crypto capital of the world.” Senate Banking Committee Chair Tim Scott indicated bipartisan support for crypto market structure legislation, with up to 18 Democrats potentially backing a bill when the Senate reconvenes on September 2, 2025.
California Wildfire Litigation: A Parallel Legal Challenge
While the SEC redefines crypto regulation, California law firms are grappling with the financial burdens of wildfire litigation, particularly against utilities like Pacific Gas & Electric (PG&E). Firms like Panish | Shea | Ravipudi LLP and Wisner Baum manage millions in upfront costs—covering expert witnesses, fire investigations, and marketing—through contingency fees and self-funded “war chests” from prior settlements, such as the $13.5 billion PG&E payout for the 2018 Camp Fire. (from prior context) To mitigate risks, firms form consortiums to share resources and leverage California’s inverse condemnation doctrine, which holds utilities strictly liable for fire damages, reducing the need for costly negligence proofs.
However, these firms face challenges similar to those in crypto regulation: balancing innovation with accountability. Just as the SEC seeks to foster blockchain growth without stifling it, wildfire attorneys must navigate ethical marketing and client trust while pursuing justice. The recent delay in Meta’s $725 million Facebook privacy settlement due to lawsuits against claims administrator Angeion Group further illustrates the complexities of large-scale litigation, where administrative transparency is critical. (from prior context)
Implications for Crypto and Beyond
Atkins’ stance could transform the U.S. crypto landscape by reducing regulatory uncertainty, encouraging institutional participation, and attracting blockchain projects back from overseas. Industry experts, like Bitwise CIO Matt Hougan, see Project Crypto as a roadmap for the next five years, potentially driving rallies in tokens tied to platforms like Ethereum and Solana. However, challenges remain, including the need for Congressional alignment and the risk of regulatory overreach creating loopholes.
For crypto firms and investors, the SEC’s pivot offers a clearer path forward. Companies can engage with the SEC’s Crypto Task Force, led by Commissioner Hester Peirce, which is hosting roundtables to refine guidelines. Meanwhile, California’s wildfire litigation underscores the broader legal industry’s need to adapt to complex, high-cost cases, whether in emerging technologies or traditional torts. As both fields evolve, stakeholders can stay informed through resources like sec.gov for crypto updates or norcalfirelawyers.com for wildfire litigation support.