Author: Sam Bourgi

Translation: Shenchao TechFlow

Senchao Guide: SEC Chairman Paul Atkins further explained in a CNBC interview why NFTs generally do not constitute securities. The SEC recently released an explanatory document listing four categories of digital assets that do not fall under securities: digital goods, digital tools, digital collectibles (including NFTs), and stablecoins.

Atkins compared NFTs to baseball cards, emphasizing that these types of assets are "buy and hold," without involving investment contracts. This is the latest move by the SEC under Atkins' leadership to shift from "enforcement-driven" to "guidance-driven."

The full text is as follows:

After the U.S. Securities and Exchange Commission (SEC) listed four major categories of digital assets not governed by securities laws, Chairman Paul Atkins further explained why non-fungible tokens (NFTs) typically do not meet the definition of securities.

In an interview with CNBC on Wednesday, Atkins reiterated the four types of digital assets identified in the SEC's recently released explanatory document that are generally not considered securities: digital goods, digital tools, digital collectibles such as NFTs, and stablecoins.

During the interview, host Andrew Ross Sorkin pressed the question about digital collectibles, pointing out that depending on their different structural designs, they may be more easily classified as securities.

Atkins responded, "Anything can be that way." 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 precedents.

Atkins stated that digital collectibles are generally viewed as items that are bought and held, similar to physical collectibles, rather than investment contracts. Investment contracts are a core definitional characteristic of securities.

He said, "These collectibles, like baseball cards, memes, memecoins, NFTs, are things that someone has bought. This is a non-reversible purchase... unlike other assets, people do not trade them."

Caption: Paul Atkins interviewed by CNBC. Source: CNBC

SEC Continues to Move Away from "Enforcement-Driven" Crypto Policies

Under Atkins' leadership, the SEC's regulatory approach to digital assets has undergone a significant adjustment. This shift coincides with the inauguration of a more crypto-friendly Trump administration 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 "regulating through enforcement" and pledged to move away from that approach. He also pointed out that tokenization is a key innovation that regulators should support rather than restrict.

Since then, he has repeatedly stated that past regulatory missteps have caused the U.S. to be up to a decade behind in crypto development and vowed to reverse this situation.