SEC Chair Paul Atkins proposes a token taxonomy tied to the Howey test, aiming to clarify securities classification and align with upcoming congressional legislation.
SEC Chair Paul Atkins announced a plan to establish a 'token taxonomy' framework to clarify which cryptocurrencies are classified as securities under U.S. law. The framework will be anchored to the Howey test and is intended to support pending congressional legislation. It would also enable certain digital tokens to trade on platforms not regulated by the SEC.