The SEC Chairman announces the token classification plan

According to Theblock, Paul Atkins, the chairman of the U.S. Securities and Exchange Commission (SEC), announced plans to create a "token classification system" at the FinTech conference held at the Federal Reserve Bank of Philadelphia, aimed at clearly distinguishing which cryptocurrencies are considered securities.

The preliminary classification includes: network tokens, NFTs, and utility tokens are not considered securities, while tokenized stocks and bonds are classified as securities. Atkins stated that this classification will be based on the Howey Test (a 1946 U.S. Supreme Court case used to determine whether an asset is an investment contract). He noted that cryptocurrencies may be part of an investment contract, but this status is not permanent. As the network matures, code is released, control becomes decentralized, and the role of the issuer diminishes, the nature of the tokens will change.