SEC to Propose Token Classification Framework for Digital Assets
The U.S. Securities and Exchange Commission (SEC) is preparing to establish a token classification system to clarify when digital assets should be treated as securities, marking a significant step toward long-awaited regulatory clarity for the crypto industry.
SEC Eyes Token Taxonomy to Define Securities vs. Commodities
Speaking at the Philadelphia Federal Reserve Bank’s annual financial technology conference, SEC Chair Paul Atkins said the Commission would soon consider introducing a “token taxonomy” grounded in legal principles that distinguish securities from commodities.
“In the coming months, I anticipate that the Commission will consider establishing a token taxonomy anchored in legal reasoning that distinguishes securities from commodities,” Atkins said, according to prepared remarks. “This will recognize that there are limiting principles to our laws and regulations.”
Atkins’ comments signaled a major shift from the previous administration’s approach and addressed a key demand from the crypto sector, which has long urged regulators to provide clear jurisdictional boundaries for digital assets.
Regulatory Reform Aligned with Trump Administration’s Crypto Agenda
The announcement comes as U.S. President Donald Trump steps up efforts to reshape the country’s crypto regulatory landscape, following campaign promises to modernize oversight and support industry innovation. Trump has openly embraced cryptocurrency and vowed to roll back regulations that crypto firms have long criticized as restrictive or outdated.
Tailored Regime and Legislative Coordination
Atkins also revealed that the SEC is weighing a “package” of exemptions to create a tailored offering regime for digital assets deemed securities under investment contract laws. The proposal would align with legislation currently being drafted in Congress to streamline how crypto assets are issued and traded.
He further echoed President Trump’s call for lawmakers to pass comprehensive crypto market structure legislation before the end of 2025, signaling closer coordination between the White House, Congress, and financial regulators on digital asset policy.
