The new token taxonomy announced by SEC Chair Paul Atkins signals a major regulatory shift in how crypto assets may be classified in the United States.
The SEC is taking new steps to reduce the longstanding confusion around how crypto assets should be regulated. Speaking at the Federal Reserve Bank of Philadelphia’s Fintech Conference, SEC Chair Paul Atkins revealed that the agency is developing a new token taxonomy rooted in the Howey Test. The goal is to create a clearer and more consistent structure for determining when a crypto asset qualifies as a security.
Atkins emphasized that while many tokens may initially fall under an investment contract, this status is not permanent. As networks mature, code is deployed, and the role of development teams diminishes, numerous tokens begin operating independently from any central actors. This marks a significant shift for an industry that has long expressed concerns about regulatory uncertainty.
However, Atkins clarified that the upcoming framework does not imply lighter oversight. Assets tied to investment contracts—such as tokenized equities—will continue to be treated as securities, and cases involving fraud or misconduct will remain subject to strict enforcement. The SEC aims to complement ongoing legislative efforts in Congress, creating a more predictable yet disciplined regulatory environment for both crypto companies and investors in the U.S.
