In an evolving digital landscape, the question of what constitutes crypto securities remains a pivotal issue for regulators and investors. This week, SEC Chair Paul Atkins revealed a groundbreaking plan to bring clarity to this complex subject.
SEC’s New Approach to Crypto Securities
The Securities and Exchange Commission (SEC), under the leadership of Chair Paul Atkins, is embarking on a mission to redefine which tokens are classified as crypto securities. This strategic initiative, known as “Project Crypto,” promises a shift away from the enforcement-heavy approach of previous administrations. The aim is to create a “token taxonomy” based on the Howey Test, reflecting the dynamic nature of digital assets.
Atkins emphasized that this new framework does not imply leniency. The SEC will continue to oversee and address cases of fraud and tokenized securities. Moreover, this initiative is designed to complement legislative efforts by Congress, offering a holistic approach to market regulation.
Circle’s Arc Token Exploration
Meanwhile, Circle is making headlines with its exploration of a native token for its Arc Layer 1 blockchain. As the company reported a substantial growth in USDC supply, this move could significantly enhance its network’s utility. In Q3 alone, Circle achieved a total revenue of $740 million, with USDC circulation skyrocketing to $73.7 billion, marking a 108% increase year-over-year.
Circle’s management also raised its 2025 revenue outlook, projecting up to $100 million in “other revenue” streams, driven by subscriptions, services, and transactions. The potential development of a native token could further solidify Circle’s position in the stablecoin-centric ecosystem.
Visa’s Innovative Pilot Program
Visa is also making waves with its new pilot program allowing businesses to send payouts in USDC. This initiative targets creators, freelancers, and gig workers, offering near-instant, cross-border payments. Initially, only USDC is supported, but Visa plans a broader rollout by 2026.
Stablecoins are becoming a central element of Visa’s strategy, as evidenced by over 130 stablecoin-linked card programs across 40 countries. The pilot significantly expands Visa Direct’s capabilities, providing users with fast and borderless access to earnings.
JPMorgan’s JPM Coin on Base
JPMorgan has officially launched its USD-denominated deposit token, JPM Coin (JPMD), on the Ethereum Layer 2 network Base. This development follows a successful pilot phase and proof-of-concept testing. Institutional clients can now benefit from 24/7, near-instant onchain settlements.
JPM Coin represents existing JPMorgan bank deposits on a public blockchain, promising regulated, KYC-compliant transactions. The bank is also considering expanding JPMD to other blockchains and exploring a euro-denominated version.
As the digital asset landscape continues to evolve, these developments highlight the importance of regulatory clarity and innovation in the crypto space. With SEC’s new crypto securities guidelines and Circle’s potential Arc token, the industry is poised for significant advancements.
