The U.S. Securities and Exchange Commission (SEC) is set to introduce a "token taxonomy" to better classify crypto assets, using the Howey Test as a foundational tool. SEC Chairman Paul Atkins announced this initiative, which aims to explore non-securitization paths for crypto assets as networks evolve and decentralize. This move is part of "Project Crypto," which seeks to enable tokens linked to investment contracts to trade on platforms regulated by the CFTC or state authorities.
Atkins emphasized the continued enforcement of fraud laws and clarified that "tokenized securities," such as stocks, will remain classified as securities. The SEC's efforts are designed to align with ongoing legislative developments, as the House of Representatives has passed a regulatory bill and two versions are under consideration in the Senate.
SEC Proposes 'Token Taxonomy' to Clarify Crypto Asset Classification
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