SEC Advances Crypto Token Taxonomy, Exempts Most Digital Assets from Securities Classification

The U.S. Securities and Exchange Commission (SEC) has taken a significant step toward clarifying the regulatory status of digital assets. Chair Paul S. Atkins announced at the Philadelphia Fed's Fintech Conference that most circulating crypto tokens do not qualify as securities under the new "token taxonomy" framework developed by the SEC's Crypto Task Force.

The proposed classification system divides tokens into four categories: network tokens/digital commodities, digital collectibles (including NFTs), utility tools, and tokenized securities. Only the latter group will remain under SEC jurisdiction, while mature blockchain networks may fall under CFTC or state oversight. "Economic reality trumps labels," Atkins emphasized, signaling a flexible interpretation of the Howey test for blockchain assets.