SEC Drops Bombshell: ‘Token Taxonomy’ Framework Reshapes Crypto Regulation Under Project Crypto

The SEC just rewrote the rulebook—again. Their new 'Token Taxonomy' framework finally gives crypto assets legal definitions, slicing through years of regulatory fog. Wall Street's gonna hate this.

Subheader: How the Game Changes Overnight

No more guessing whether your token's a security or a commodity. The SEC's framework draws bright lines—while leaving just enough gray area for lawyers to buy new yachts. Classic.

Subheader: The Compliance Trapdoor

Projects now face a brutal choice: restructure to fit the taxonomy or risk becoming 'unenforceable' ghosts in the blockchain. Guess which option VCs are pushing?

Closing Punch: This taxonomy won't kill decentralization—but it'll damn sure tax it. Welcome to 'Project Crypto,' where the house always wins.

• Paul Atkins introduces a ‘token taxonomy’ to clearly distinguish crypto from commodities.
• The taxonomy is a part of the commission’s broader initiative Project Crypto, aimed at modernizing rules for digital assets and supporting innovation.
• Aims to replace enforcement uncertainty with transparent classification and legal clarity.

SEC Chairman Paul S. Atkins announced that in the coming months the agency will consider creating a clear token taxonomy “”, in a speech delivered on November 12, 2025,

He pointed out that this is about “”

A new framework for digital assets

Atkins defined three themes to structure his remarks:

(1) The importance of a clear token taxonomy;

(2) How Howey applies while recognizing that investment contracts can, in fact, terminate and

(3) What does that mean in practice for innovators, intermediaries, and investors?

He also made clear that the taxonomy work complements, but does not replace, legislation currently being considered by Congress.

What this means for tokens, issuers and markets

By building a taxonomy, the commission wants to bring transparency to market participants about whether a given token is a security or a commodity-type, or other non-security asset. That’s a way of resolving some long-standing confusion in the crypto sector.

He also expressed his support for the work of the commission’s Crypto Task Force, led by Commissioner Hester Peirce, and praised her framework for “.”

What that means to innovators and intermediaries is that projects will have greater clarity on their path. Knowing whether a token issue triggers registration, disclosure, or other compliance obligations. It also says not all tokens will be treated as securities, which could reduce deterrents to innovation.

Industry and Regulatory Ripple Effects

This announcement is part of a broader shift in U.S. digital-asset regulation. The taxonomy and Project Crypto method reflect the commission stepping back from an enforcement-first posture to one more focused on rule-making and clarity. For example, industry observation suggests that “the U.S. crypto market is open for business” after years of doubt. Certainly, outside sources informed that the commission’s move is part of “sweeping plans to accommodate crypto”.

The taxonomy also has implications for global competitiveness. It has clearer rules that may attract issuers and platforms to operate onshore in the U.S. rather than offshore. At the same time, there are still risks. As enforcement against fraud and manipulation continues, the taxonomy must still be expanded by rule-making or guidance.