The U.S. Securities and Exchange Commission is considering exemptions for crypto assets tied to investment contracts to encourage innovation in the blockchain space while protecting investors, according to Chairman Paul Atkins. The debate over defining digital assets may see clarity beyond enforcement actions.

Atkins believes that even crypto assets tied to investment contracts may not always retain that status, as contracts can expire or be terminated based on issuer actions. He argues that tokens associated with investment contracts should be able to be handled by firms overseen by other regulators.

Atkins outlined his agency’s securities jurisdiction, including network tokens, digital collectibles, and tokenized securities. The SEC is also working with Congress on market structure legislation to solidify its crypto position and protect against future policy reversals.

Atkins emphasized the need for legislation to complement the SEC’s efforts and protect against potential reversals in policy. He believes that a new law will help ensure the permanence of the current regulatory framework and support innovation in the crypto space.

Read more at Yahoo Finance: U.S. SEC Chief Atkins Says Clarity Coming on Crypto Tied to Investment Contracts