US Securities and Exchange Commission (SEC) Chair Paul Atkins suggested only a small fraction of crypto tokens should be considered securities, as part of the agency’s changing approach to what constitutes a security under its purview.

Speaking from the Wyoming Blockchain Symposium in Jackson Hole on Tuesday, Atkins discussed how the SEC’s “Project Crypto” initiative to establish rules on digital assets could affect how the agency addresses companies moving forward. He signaled that the SEC would chart its own path, as members of Congress consider bills to establish market structure.

“We can not go about looking at [tokens] themselves as necessarily being a security,” said Atkins, adding:

“From the SEC’s perspective, we will plow forward and on this idea that just the token itself is not necessarily the security, and probably not. There are very few, in my mind, tokens that are securities, but it depends on what’s the package around it and how that’s being sold.” 

Atkins’ remarks represented a stark change from those of former SEC Chair Gary Gensler, who said the “vast majority” of crypto assets were securities under the SEC’s standard of the Howey test.

Gensler resigned from the SEC in January on the day US President Donald Trump was sworn into office, leading to Commissioner Mark Uyeda becoming acting chair of the agency until Atkins’ confirmation.

Related: Crypto Biz: Has SEC’s Project Crypto been priced in?

Awaiting ‘clear rules of the road’ from Congress

While Atkins, as chair, presumably has the authority to interpret SEC rules and guidelines, including those covering digital assets, members of Congress are planning to pass a new law to establish a crypto market structure in September.

The US House of Representatives passed the Digital Asset Market Clarity (CLARITY) Act in July, and leaders at the Senate Banking Committee said they would “build on” the bill to pass their version of market structure.

The Senate is scheduled to return from recess on Sept. 2. Also speaking at the Wyoming Blockchain Symposium on Tuesday, Senate Banking Committee Chair Tim Scott suggested that as many as 18 Democrats could join with Republicans in supporting market structure legislation.

Magazine: SEC’s U-turn on crypto leaves key questions unanswered