SEC Chair Outlines Regulatory Approach for Digital Assets Under ‘Project Crypto’
- SEC Chair Paul Atkins announced plans to modernize digital asset regulation, including a potential token taxonomy based on the Howey test.
- Atkins indicated that while some tokens may initially be classified as securities, they could cease to be so once the investment contract has run its course.
- Digital commodities, collectibles, and network tokens may not fall under SEC jurisdiction, while tokenized securities will continue to be regulated.
- Legislation is pending in Congress that could introduce exemptions for crypto assets linked to investment contracts.
- Despite a government shutdown, progress continues on a market structure bill in the Senate aimed at funding through January.
The SEC’s evolving stance on digital assets aims to clarify regulatory frameworks while ensuring investor protection against fraud. The agency’s focus includes differentiating between various types of tokens and their regulatory status.
Atkins emphasized that fraud will still be prosecuted rigorously, highlighting the SEC’s commitment even amidst legislative changes regarding crypto assets.(Source)
