The SEC plans to introduce a "Token Classification Act": using the Howey test as an anchor to explore the non-securitization path for crypto assets

According to The Block, SEC Chairman Paul Atkins proposed the establishment of a "token taxonomy," centered around the Howey Test, to classify which crypto assets qualify as securities.

He stated that crypto assets could detach from the characteristics of investment contracts as the network matures and control becomes decentralized. The SEC has launched "Project Crypto," which aims to allow tokens related to investment contracts to be traded on CFTC or state regulatory platforms, and is considering a package of exemptions for crypto assets. Atkins reiterated a strict enforcement against fraud and confirmed that "tokenized securities," such as stocks, still fall under the category of securities. In terms of legislation, the House has passed an industry regulation bill, and two versions are advancing in the Senate; the SEC's work aims to complement congressional legislation.