SEC Chair Paul Atkins Proposes ’Token Taxonomy’ to Clarify Crypto Asset Classification
SEC Chair Paul Atkins announced plans to establish a federal 'token taxonomy' during his keynote at The Federal Reserve Bank of Philadelphia's FinTech Conference. The framework aims to provide regulatory clarity while maintaining the Howey test as its foundation.
Atkins emphasized that most crypto tokens should not be classified as securities, drawing distinctions between digital commodities, collectibles, tools, and tokenized securities. The latter category alone would meet the traditional definition of securities under SEC purview.
The proposal represents the next phase of Project Crypto, the SEC's ongoing initiative to develop coherent digital asset policies. Atkins stressed the taxonomy would complement rather than replace congressional action on cryptocurrency regulation.
