Laika AI
Last Updated
April 24, 2026

The U.S. Securities and Exchange Commission is charting a sharp reversal from its prior crypto posture. SEC Chairman Paul S. Atkins announced Project Crypto on November 12, 2025, outlining a token taxonomy that could classify most digital assets outside the agency’s securities jurisdiction.
Speaking at the Federal Reserve Bank of Philadelphia’s Fintech Conference, Atkins said the Commission will consider establishing a token taxonomy “anchored in the longstanding Howey investment contract securities analysis”. The framework is designed to bring “coherent, transparent treatment of crypto assets under the federal securities laws” after years of industry demands for clarity.
Atkins previewed four categories that mirror how the industry views crypto instruments:
1. Digital Commodities or Network TokensAssets tied to functional, decentralized protocols are “not securities,” Atkins said. These tokens derive value from the system itself, not “essential managerial efforts of others”.
2. Digital CollectiblesNFTs and digital art “designed to be collected” are not securities when purchasers do not expect profits from managerial efforts.
3. Digital ToolsTokens providing access, credentials, or membership are not securities if sold for use rather than speculation. For context on how oracle networks like Chainlink fit into this category, market intelligence reports track their utility and data infrastructure role.
4. Tokenized SecuritiesStocks, bonds, and other financial instruments on-chain “remain subject to the federal securities laws in full”.
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Atkins stressed that classification may change as networks mature. “Networks mature. Code is shipped. Control disperses. The issuer’s role diminishes or disappears,” he said. At that point, tokens may trade without being securities.
Beyond classification, Atkins signaled the SEC will weigh a package of exemptions for tokenized securities trading on-chain. The so-called Innovation Exemption would create a “tailored offering regime” for digital assets that are part of an investment contract.
The move marks a “final nail” in the Gensler era, according to analysts, reversing the presumption that most tokens are securities. Atkins criticized past SEC approaches for creating “unnecessary obstacles to U.S. innovation”.
Atkins laid out two guiding principles for Project Crypto:
The SEC sent the proposed interpretation to the White House for review on March 24. As of this week, government records show the proposal as “pending review”.
The taxonomy aligns with market structure legislation currently being drafted in Congress. Atkins echoed President Donald Trump’s call for lawmakers to adopt crypto legislation before year-end.
Commissioner Hester Peirce’s foundational work heavily influenced the framework. The SEC’s Division of Corporation Finance issued related guidance on March 17 outlining the same four categories.
A formal token taxonomy would give issuers, exchanges, and custodians a predictable way to classify assets before enforcement. Projects across DeFi, NFTs, and AI-linked tokens could benefit if deemed non-securities. For deeper breakdowns of DeFi protocols that could be impacted, see this Monstro DeFi guide.
The announcement delivers on “key demands of the ascendant crypto sector” that sought clarity on SEC jurisdiction. For tokenized securities, the Innovation Exemption could unlock on-chain trading under a bespoke regime.