SEC proposes "Token Classification Framework": Anchored by the Howey Test, exploring non-securitization pathways for crypto assets

PANews November 12 News, according to The Block, SEC Chairman Paul Atkins proposed establishing a “token taxonomy” to classify which cryptocurrencies are securities based on the Howey Test. He stated that cryptocurrencies could become detached from investment contract attributes as the network matures and control becomes more decentralized. The SEC has launched “Project Crypto,” aiming to allow tokens related to investment contracts to be traded on CFTC or state regulatory platforms, and is considering an exemption package for cryptocurrencies. Atkins reiterated strict enforcement against fraud and confirmed that tokenized securities such as stocks still qualify as securities. Legislation-wise, the House has passed an industry regulation bill, with two versions advancing in the Senate; the SEC’s efforts aim to complement congressional legislation.