SEC considers establishing token taxonomy under Howey framework
The SEC is developing a token taxonomy based on the Howey framework to categorize crypto assets and clarify which are securities.Summary
SEC Chairman Paul Atkins announced that the agency is considering establishing a token taxonomy based on the Howey investment contract framework in the coming months. This taxonomy aims to clarify the regulatory status of crypto assets by outlining four categories: digital commodities/network tokens tied to decentralized systems, digital collectibles, digital tools (like memberships), and tokenized securities representing financial ownership. Assets falling into the first three categories will generally not be treated as securities. Furthermore, Atkins suggested that tokens initially sold as securities might lose that status once the defining investment contract has run its course, such as when a project becomes fully decentralized or the issuer's role concludes. The SEC intends for these guidelines to balance regulation with innovation and will coordinate with the CFTC, banking regulators, and Congress.
(Source：Crypto Briefing)