SEC Chair Paul Atkins unveils plan for ‘token taxonomy’ to redefine crypto regulation

Securities and Exchange Commission (SEC) Chair Paul Atkins revealed a plan to establish a "token taxonomy" to delineate which cryptocurrencies qualify as securities, anchoring this framework in the longstanding Howey Test analysis. Atkins stated that the Commission will consider establishing this taxonomy in the coming months, acknowledging that a token's status can change as networks mature and the issuer's role diminishes. He reiterated the SEC's stance that tokenized securities remain securities and emphasized that this new framework is not a promise of lax enforcement, asserting that "Fraud is fraud." Furthermore, Atkins directed staff to prepare recommendations allowing tokens tied to investment contracts to trade on non-SEC regulated platforms, such as those registered with the CFTC or under state regimes, and expressed hope for considering exemptions to create a tailored offering regime for crypto assets. Atkins noted that this agency work is intended to complement, not replace, the legislative efforts currently underway in Congress.

(Source：The Block)