Citing HashNews, the U.S. Securities and Exchange Commission (SEC) has proposed a 'token taxonomy' framework led by Chair Paul Atkins, aiming to classify crypto assets using the Howey Test to determine which qualify as securities. The initiative suggests that as networks mature and decentralize, certain tokens may lose their investment contract status. The SEC has launched 'Project Crypto' to allow tokens linked to investment contracts to trade under CFTC or state-level regulations, while also exploring exemptions for crypto assets. Atkins emphasized strict enforcement against fraud and confirmed that tokenized stocks remain classified as securities. On the legislative front, the House has passed a regulatory bill, and two Senate versions are under development; the SEC's efforts aim to complement congressional legislation.
SEC Proposes 'Token Taxonomy' to Explore Non-Securities Path for Crypto Assets
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