U.S. SEC Chairman Paul Atkins announced a "token taxonomy" plan that will redefine crypto regulation based on testing.

Odaily Planet Daily reports that U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins, speaking at a fintech conference hosted by the Federal Reserve Bank of Philadelphia, outlined the agency's plans to establish a "token taxonomy" to redefine which cryptocurrencies qualify as securities. He stated that this taxonomy will be anchored to the long-referred Howey investment contract securities analysis. Atkins pointed out that cryptocurrencies can be part of investment contracts, but as networks mature, the role of issuers diminishes or disappears; "tokens will not forever retain their security status." This taxonomy aims to complement the crypto legislation currently under consideration in Congress. Atkins also revealed that he has instructed staff to prepare recommendations considering allowing tokens associated with investment contracts to trade on platforms not regulated by the SEC, such as those registered with the CFTC. (The Block)