TLDR Tech / Crypto
SEC Issues Token Taxonomy for Crypto Assets
The SEC released interpretive guidance on March 17 that establishes a four-category token taxonomy covering digital securities, digital commodities, digital collectibles, and digital tools/stablecoins, formally defining how federal securities laws apply to each class of crypto asset. Chairman Atkins stated that "most crypto assets are not themselves securities," and the guidance places airdrops, protocol staking, and protocol mining outside SEC jurisdiction, removing a major source of enforcement uncertainty for protocol developers and DAOs. Investment contracts lose their securities classification once an issuer fulfills or fails to satisfy its original representations, a definitional shift with direct consequences for token launch structuring and secondary market compliance. The CFTC co-signed the taxonomy in a coordinated action, and Atkins indicated a formal rulemaking exceeding 400 pages, including an innovation exemption for crypto firms, is expected within weeks.
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