SEC to Redefine Crypto Assets as ‘Non-Securities’ Under New Taxonomy

The Securities and Exchange Commission’s Division of Corporation Finance is pushing for a clear taxonomy to determine when crypto assets should no longer be classified as investment contracts. Director Moloney aims to establish definitive regulations, providing companies with the clarity needed to avoid legal pitfalls.

In a statement titled "Coming Attractions," Moloney outlined plans for crypto asset reform, including reduced disclosure burdens and modernized reporting cycles. Central to this effort is Project Crypto, an initiative first proposed by Chairman Atkins in late 2025, designed to help market participants navigate what has been described as a "securities-law minefield."

The SEC is crafting a regulation that WOULD allow crypto assets to transition from being classified as securities to non-securities. This shift could occur once the issuer’s "essential managerial efforts" cease or the network achieves sufficient decentralization.