SEC Chair Paul Atkins Drops Bombshell: ’Token Taxonomy’ Framework Under Active Consideration

The SEC just signaled its biggest crypto move yet—and it could reshape the entire digital asset landscape.

Chair Paul Atkins revealed regulators are weighing a formal 'token taxonomy,' a potential game-changer for an industry drowning in regulatory ambiguity. No more guessing whether your asset's a security—this framework might finally draw the line.

Wall Street's already groaning—nothing terrifies traditional finance more than clear rules that bypass their gatekeeping. But for crypto? This could be the lifeline projects need to dump the 'wild west' stigma and attract institutional billions.

Of course, knowing the SEC, expect this 'consideration' to take longer than a Bitcoin block time. Bureaucracy moves at its own pace—even when the future of finance is hanging in the balance.

SEC Chair Paul Atkins Weighs Token Taxonomy

Speaking at The Federal Reserve Bank of Philadelphia’s FinTech Conference on November 12, Atkins announced that he is weighing the creation of a token taxonomy “anchored in the longstanding Howey investment contract securities analysis” as the next phase of the SEC’s “Project Crypto” initiative.

I was honored to give the keynote at the @PhiladelphiaFed’s Ninth Annual Fintech Conference this morning. My remarks outlined the next steps in the @SECgov’s Project Crypto and what to expect in the coming months. pic.twitter.com/WI79ANJrfD

While Atkins assured that the taxonomy “aims to complement, not replace, Congress’s critical work,” he said that he views most crypto tokens as non-securities.

Atkins declared that he believes digital commodities, digital collectibles, and digital tools do not constitute securities, while tokenized securities do, as they “represent the ownership of a financial instrument enumerated in the definition of ‘security’ that is maintained on a crypto network.”

“A reasonable Commission approach to crypto will not by itself decide the fate of the market—or of any particular project,” Atkins said. “Markets will do that.”

“But it will help to ensure that the United States remains a place where people can experiment and learn, fail and succeed, under rules that are both firm and fair,” he added.

New Crypto Market Structure Draft Outlines SEC, CFTC Collaboration

Atkins’ commentary comes just days after Senate Agriculture Committee Chairman John Boozman (R-AR) and Senator Cory Booker (D-NJ) announced their own crypto market structure legislation discussion draft.

The draft specifically orders the SEC and the Commodity Futures Trading Commission (CFTC) to “collaborate on necessary inter-agency rulemakings.”

“As Congress works to expand authority for the commission to oversee the trading of digital assets that are commodities, it’s essential that we also ensure it has the tools, personnel, and resources necessary to carry out this new mission, along with its current responsibilities,” Boozman said.