- Paul Atkins introduces a ‘token taxonomy’ to clearly distinguish crypto from commodities.
- The taxonomy is a part of the commission’s broader initiative Project Crypto, aimed at modernizing rules for digital assets and supporting innovation.
- Aims to replace enforcement uncertainty with transparent classification and legal clarity.
SEC Chairman Paul S. Atkins announced that in the coming months the agency will consider creating a clear token taxonomy “anchored in the longstanding Howey investment contract securities analysis, recognizing that there are limiting principles to our laws and regulations”, in a speech delivered on November 12, 2025,
He pointed out that this is about “basic fairness and common sense as it relates to the application of the federal securities laws to crypto assets and related transactions.”
A new framework for digital assets
Atkins defined three themes to structure his remarks:
(1) The importance of a clear token taxonomy;
(2) How Howey applies while recognizing that investment contracts can, in fact, terminate and
(3) What does that mean in practice for innovators, intermediaries, and investors?
He also made clear that the taxonomy work complements, but does not replace, legislation currently being considered by Congress.
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What this means for tokens, issuers and markets
By building a taxonomy, the commission wants to bring transparency to market participants about whether a given token is a security or a commodity-type, or other non-security asset. That’s a way of resolving some long-standing confusion in the crypto sector.
He also expressed his support for the work of the commission’s Crypto Task Force, led by Commissioner Hester Peirce, and praised her framework for “coherent, transparent treatment of crypto assets under the federal securities laws, grounded in economic reality rather than in slogans or fear.”
What that means to innovators and intermediaries is that projects will have greater clarity on their path. Knowing whether a token issue triggers registration, disclosure, or other compliance obligations. It also says not all tokens will be treated as securities, which could reduce deterrents to innovation.
Industry and Regulatory Ripple Effects
This announcement is part of a broader shift in U.S. digital-asset regulation. The taxonomy and Project Crypto method reflect the commission stepping back from an enforcement-first posture to one more focused on rule-making and clarity. For example, industry observation suggests that “the U.S. crypto market is open for business” after years of doubt. Certainly, outside sources informed that the commission’s move is part of “sweeping plans to accommodate crypto”.
The taxonomy also has implications for global competitiveness. It has clearer rules that may attract issuers and platforms to operate onshore in the U.S. rather than offshore. At the same time, there are still risks. As enforcement against fraud and manipulation continues, the taxonomy must still be expanded by rule-making or guidance.
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