Author: Sam Bourgi Compiled by: DeepWave TechFlow DeepInsight summary: SEC Chair Paul Atkins said in a CNBC interview that nonfungible tokens (NFTs) generally do not qualify as securities. The SEC recently issued interpretive guidance identifying four types of digital assets that typically fall outside securities laws: digital commodities, digital tools, digital collectibles (including NFTs), and stablecoins. Atkins compared NFTs to baseball cards, arguing these are largely "bought to hold" and usually do not involve investment contracts. The guidance reflects the SEC's latest push under Atkins to move from enforcement-first regulation toward clearer, guidance-led oversight. After the U.S. Securities and Exchange Commission outlined four categories of digital assets it generally does not treat as securities, Chair Paul Atkins expanded on the agency's thinking around NFTs in an interview with CNBC on Wednesday. Atkins reiterated the four groups named in the SEC's interpretive document: digital commodities, digital tools, digital collectibles such as NFTs, and stablecoins. CNBC host Andrew Ross Sorkin challenged the "digital collectibles" category, noting that certain structures could make them easier to characterize as securities. Atkins replied that the same caveat applies broadly and stressed that the SEC's analysis remains fact-specific, turning largely on whether an asset arrangement constitutes an investment contract under long-standing legal precedent. In most cases, he said, digital collectibles are closer to traditional items purchased for ownership and holding, not investment contracts—a central hallmark of securities. "These collectibles—like baseball cards, memes, memecoins, and NFTs—are things that someone bought. It's an immutable purchase... unlike other assets that people trade," Atkins said. Caption: Paul Atkins being interviewed by CNBC. Source: CNBC SEC signals further shift away from enforcement-driven crypto policy Under Atkins, the SEC's posture on digital-asset regulation has visibly changed, tracking with the more crypto-friendly Trump administration that took office in early 2025. "We are breaking away from the past," Atkins said, describing an effort to provide clearer guidance and a more predictable regulatory framework. Atkins has previously criticized what he called the SEC's reliance on "regulation by enforcement" and said the agency should move away from that approach. He has also argued that tokenization is a major innovation regulators should support rather than constrain. In recent remarks, he said earlier policy missteps set the United States back by as much as a decade in crypto development and pledged to help reverse that gap.

U.S. session roundup from @TheBlockCo: The SEC has approved Nasdaq's pilot program for trading tokenized equities. HIVE launched its first AI GPU cluster in Paraguay, marking a push beyond bitcoin mining into AI infrastructure. Polymarket acquired crypto startup Brahma to improve liquidity on its prediction platform. The Senate Banking Committee is targeting an April vote on a crypto market structure bill, according to Sen. Lummis. Trump-linked American Bitcoin has moved ahead of Galaxy in treasury rankings, with bitcoin holdings rising to 6,899 BTC. Visa Crypto Labs released a command-line tool designed to let AI bots initiate payments. Fold posted a $69.6 million net loss for 2025 as it invests in expanding its bitcoin credit card user base. The broader crypto market shed about $100 billion. Bitcoin fell 5% as the Federal Reserve signaled caution. FTX will begin another $2.2 billion distribution to creditors on March 31. Algorand Foundation cut 25% of its workforce, citing macro uncertainty and a weaker market backdrop.

Arizona has launched its first criminal action against prediction-market operator Kalshi, filing a 20-count case that accuses the company of running an unlicensed gambling business, offering illegal election wagering, and facilitating unlicensed sports betting. Attorney General Kris Mayes said Kalshi took bets from Arizona residents in ways that violate state law. The filing cites event contracts tied to sporting events and the passage of the SAVE Act. The state also brought four counts related to election wagering, pointing to contracts tied to the 2028 U.S. presidential election and other elections. Arizona named KalshiEx LLC and Kalshi Trading LLC as defendants, arguing that offering sports event contracts without a license breaches state gambling laws and that wagering on elections is prohibited. Mayes said the company's branding does not change the legal reality in Arizona. "Kalshi may brand itself as a 'prediction market,' but what it's actually doing is running an illegal gambling operation and taking bets on Arizona elections, both of which violate Arizona law. No company gets to decide for itself which laws to follow." The criminal filing comes days after Kalshi sued Arizona, a move the attorney general's office described as an effort to dodge accountability by taking states to federal court, citing similar preemptive actions in Iowa and Utah. Kalshi has called the Arizona case baseless and said its event contracts are regulated by the Commodity Futures Trading Commission (CFTC) as derivatives. States have challenged that position, and federal courts have issued mixed rulings. A federal judge in Tennessee temporarily blocked state regulators from enforcing a cease-and-desist order against Kalshi. Judges in Massachusetts and Nevada have ruled that sports-related contracts remain subject to state law. The CFTC recently issued guidance on prediction markets as it pushes to position itself as the primary regulator. Revenue data underscores what is at stake. A Parity report estimates prediction markets generated $122 million in revenue over the last 30 days, with Kalshi accounting for $110 million. Kalshi's revenue has climbed from $1.8 million in 2023 to $24 million in 2024 and $260 million in 2025, putting it on pace to set another record this year and potentially surpass $1 billion. Parity said Kalshi's nearest competitors lag far behind: Polymarket generated $4.2 million after introducing fees at the start of this year, while Crypto.com produced $4.1 million. Kalshi reportedly charges an average 1.2% per trade, compared with 0.01% on Polymarket. Sports contracts drive most of Kalshi's business, with 89% of its revenue tied to those markets, a concentration that helps explain the wave of state actions. Kalshi may also face pressure on Capitol Hill. Democratic lawmakers recently introduced legislation that would ban prediction markets based on government actions and certain predetermined outcomes, citing insider-trading concerns.

Canadian authorities have revoked the registrations of 50 money services businesses (MSBs) so far this year, with 47 linked to cryptocurrency-related activity. Regulators are focusing on firms suspected of having weak compliance controls as Ottawa intensifies efforts to curb money-laundering risks. The latest moves come as global scrutiny of crypto regulation increases. Officials said additional enforcement actions are already underway, with crypto MSBs and crypto ATMs facing heightened regulatory pressure.

SEC Chair Paul Atkins is signaling a major recalibration in U.S. crypto oversight, outlining a proposed safe-harbor framework designed to reduce regulatory friction for early-stage crypto projects and certain token activity. In the guidance, Atkins said "most crypto assets" should not be treated as securities. The SEC also set out how it is drawing the line between crypto assets and securities offerings, detailing the features that can make an asset an "investment contract" under federal securities laws. Atkins' proposal centers on three elements: a "startup exemption," a "fundraising exemption," and an "investment contract safe harbor." "It's time to stop diagnosing the problem and start delivering the solution," he said, arguing that a safe harbor could help innovators raise capital in the U.S. while maintaining appropriate investor protections. Under the startup exemption, crypto companies would be able to raise capital or operate for a limited period with additional regulatory latitude as they scale. The fundraising exemption would allow certain crypto investment contracts to raise a specified amount each year without registering under securities laws. The "investment contract safe harbor" is intended to give issuers and purchasers clearer expectations on when securities rules apply. The guidance also states that activities such as protocol mining (including Bitcoin mining), staking, and crypto airdrops do not constitute securities. Atkins described the approach as long-awaited clarity, emphasizing that investment contracts can ultimately terminate and that clearer standards could improve the path for entrepreneurs and investors as lawmakers pursue updated crypto legislation. The move follows recent coordination between the SEC and the Commodity Futures Trading Commission (CFTC). The CFTC said it would apply the Commodity Exchange Act consistent with the SEC's interpretation, calling the alignment "a major step" to provide greater clarity on how crypto assets are treated and to complement Congressional efforts to codify a comprehensive market structure framework. The developments mark another significant step in U.S. crypto regulation, with the SEC positioning the proposed framework as a way to support innovation while preserving investor protections.

XRP Treasury company Evernorth has filed a Form S-4 with the U.S. Securities and Exchange Commission, bringing it a step closer to going public and ultimately debuting on Nasdaq. The company plans to list through a SPAC merger, with Armada Acquisition Corp. II cited as the transaction partner. Evernorth first disclosed its intention to pursue a public listing in October. Market observers view the S-4 submission as the final major regulatory milestone for the deal.

U.S. Senator Bernie Moreno (@berniemoreno) warned that failing to pass the CLARITY Act by May could freeze crypto legislation for an extended period, delivering the message in a video address at the DC Blockchain Summit. With Senate momentum building, lawmakers say there is a limited window before midterm election dynamics begin to dominate the agenda. The CLARITY Act is designed to set a framework for U.S. crypto market structure. Prolonged delays have already slowed progress for months. Senator Cynthia Lummis said the Senate Banking Committee plans to take up the bill again soon, with a markup expected in the second half of April. Moreno said another setback could push broader reform years into the future.

Nasdaq has received approval from the U.S. Securities and Exchange Commission (SEC) to trade tokenized securities under a pilot program.

Legislative momentum around U.S. crypto policy accelerated in Washington this week as lawmakers and industry executives gathered for the DC Blockchain Summit. Sen. Cynthia Lummis said she expects the Senate Banking Committee to finally schedule a long-awaited markup of the crypto market-structure bill known as the CLARITY Act for late April. Lummis told attendees she believes the committee will advance the bill and that a full Senate vote could follow before the end of the year. "We're gonna have this thing done come hell or high water by the end of the year," she said. She also indicated the Republican-led markup is likely to take place in the second half of April after the Easter recess. One of the most contentious sticking points has been stablecoin "yield." Banking advocates have argued that yield-bearing stablecoin products could resemble deposit interest and draw funds away from traditional deposit accounts. Lummis said negotiators have drafted language designed to prevent crypto platforms from marketing or delivering rewards in ways that mimic bank deposit yield or that increase based on the size of a user's holdings. "Anything that sounds like banking product terminology will not appear," she said, adding she had not reviewed the latest draft but noted Coinbase CEO Brian Armstrong has signaled openness to compromise. Lummis also said negotiators believe remaining issues tied to decentralized finance have largely been resolved. "We think we've got the DeFi issue put to bed," she said, pointing to ongoing efforts to define how peer-to-peer (P2P) activity and protocol-level services should be regulated. On social media, Lummis highlighted what she described as a favorable political window, writing that there has "never been a more pro-digital asset administration in United States history than @POTUS," and urging lawmakers to capitalize on the moment to complete market-structure reforms. Additional updates from Crypto in America suggested talks are moving quickly. Journalist Eleanor Terrett reported that Senate Banking Committee Chairman Tim Scott said at the summit he expected to have "the first proposal" on stablecoin yield by the end of the week. Scott credited Sens. Angela Alsobrooks and Thom Tillis, along with Patrick Witt, executive director of the White House Crypto Council, with helping bridge negotiations between the banking and crypto sectors. Scott also said the committee is making progress on DeFi, ethics, and quorum matters. He added that some Democratic concerns are being addressed through a proposal to include minority-party representation at the SEC and CFTC, a step intended to strengthen bipartisan backing. Featured image from OpenArt, chart from TradingView.com