SEC Crypto News Unveils Strategy to Redefine Cryptocurrency Assets

Recent updates from the SEC regarding cryptocurrency indicate plans to establish a formal “token taxonomy” that has the potential to reshape the classification of digital assets under US law.

During a speech in Philadelphia on November 12, SEC Chair Paul S. Atkins announced that the agency plans to present a structured framework in the coming months, which will be based on the Supreme Court’s Howey test—the legal criterion utilized to determine if an asset qualifies as a safety.

This initiative seeks to clarify one of the most disputed aspects of crypto regulation: identifying when a coin is classified as a security and when it is not.

Atkins also mentioned that the Commission will be unveiling a “package” of exemptions aimed at fostering a more adaptable system for crypto projects that engage in selling assets through investment contracts.

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This strategy would offer such tokens a more defined pathway to operate under US law without categorizing them alongside traditional securities.

These remarks took place at the Federal Reserve Bank of Philadelphia’s fintech conference, addressing long-standing ambiguity regarding the SEC’s authority over cryptocurrencies.

Atkins outlined four primary classifications for digital assets: “digital commodities” or “network tokens,” “digital collectibles,” “digital tools,” and “tokenized securities.”

He emphasized that tokenized forms of conventional financial products “are and will remain securities.”

He further added that investment contracts “can conclude,” indicating that a crypto token issued under that framework doesn’t necessarily retain its protection status indefinitely. “Fraud is fraud,” he affirmed, stating that enforcement measures will persist as the agency develops new regulations.

This policy dialogue unfolds as Congress contemplates broader legislation to clarify how the SEC and the Commodity Futures Trading Commission will share responsibilities in overseeing the cryptocurrency market.

A new draft presented by Senate Agriculture leaders this week would assign primary oversight of most non-security tokens to the CFTC.

This proposal reflects the House’s previous CLARITY Act, which outlines a similar framework for defining digital assets.

Meanwhile, the White House has pushed for a taxonomy-based system in its own plan for digital assets.

SEC official Atkins indicated that the agency’s initiatives are meant to support, not substitute, the efforts of Congress. Industry groups have dedicated a significant portion of 2025 advocating for clearer definitions and feasible crypto law routes.

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Is the SEC Crypto Announcement a Move Toward Enhanced Oversight of the Market?

In recent submissions to the SEC’s Crypto Task Force, the Crypto Council for Innovation and others contended that well-defined categories could “establish a regulatory taxonomy” and minimize the necessity for case-by-case enforcement.

Coinbase has similarly requested clear, comprehensive regulations regarding token classification, custody procedures, and applicable trading venue standards.

By late Wednesday, Bitcoin was trading around $101,600, reflecting a decrease of approximately -1% for the day.

Conversely, Ether maintained a price close to $3,420, with minimal variation over the past 24 hours.

The overall valuation of the crypto market was approximately $3.4 trillion, reflecting a decrease of about -1% from the previous day, as investors awaited further details or an official proposal from the SEC.

The Commission is anticipated to release a draft proposal in the upcoming weeks, initiating a period for public input. Should Congress advance its own legislation, both initiatives could culminate in a comprehensive set of rules that harmonize agency definitions with legal frameworks.

Key aspects to monitor include how the SEC delineates “network tokens” from tokenized securities, what exemptions are incorporated, and how it synchronizes regulatory oversight with the CFTC.

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