SEC Sets New Token Rules in Revised ‘Project Crypto’ Plan.

SEC Advances ‘Project Crypto’ With New Token Classification Plan

Written by Aaron S.,

Editor-In-Chief

Last Updated: November 13, 2025

Key Takeaways

The SEC Chair Paul Atkins plans clearer token classifications through its “Project Crypto” effort, while Congress considers market-structure updates;
Atkins said a new token taxonomy based on the Howey test will help determine when investment contracts end and when tokens no longer count as securities;
Digital commodities, collectibles, tools, and network tokens may fall outside SEC rules, while tokenized securities stay regulated as Congress weighs new offerings.

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US Securities and Exchange Commission Chair Paul Atkins explained how the agency plans to approach oversight of digital assets while Congress reviews new market-structure proposals.

Speaking at the Federal Reserve Bank of Philadelphia, Atkins described how the commission intends to reshape parts of its rulebook under its "Project Crypto" effort.

He said the agency is working toward a clearer system for classifying different kinds of tokens so that companies and investors can better understand how the rules apply.

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A key part of this effort is establishing a "token taxonomy". Atkins noted that this work will rely on the Howey test, which the SEC uses to decide when something functions as a security.

He highlighted the point that "investment contracts can come to an end".

He pointed to remarks from "Commissioner Hester Peirce" on this topic. Peirce has argued that a token launch may involve an investment contract at first, but conditions can change over time. Atkins added:

Once the investment contract can be understood to have run its course, the token may continue to trade, but those trades are no longer 'securities transactions'.

Atkins also stated that digital commodities, collectibles, tools, and network tokens would not be considered securities if no investment contract exists. However, "Tokenized securities" would remain under the SEC’s authority.

He noted that Congress is considering changes that could allow a more flexible offering process for certain crypto projects.

Recently, the US Senate Agriculture Committee has shared a new draft proposal to set clearer rules for regulating cryptocurrency markets. What does the proposal cover? Read the full story.