SEC Chairman Paul Atkins has outlined a new token classification system based on the Howey Test during a recent speech on the "Project Crypto" initiative. The proposed framework categorizes crypto assets into four types: digital commodities (or network tokens), digital collectibles, digital utilities, and tokenized securities. Atkins emphasized that while most crypto assets are not securities, they may constitute investment contracts during issuance, which can become void once fulfilled or terminated. He highlighted the SEC's commitment to defining regulatory boundaries based on economic substance and is considering exemptions and tailored issuance systems to balance investor protection with innovation.
SEC Chairman Proposes Four-Category Token Classification System
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