SEC proposes ‘token taxonomy’ for interpreting crypto under securities laws

The SEC has proposed a new interpretive framework called 'token taxonomy' for applying federal securities laws to digital assets. This framework would carry more regulatory weight than previous staff-level guidance, potentially providing clearer standards for crypto classification under securities laws.

• →The SEC proposed an interpretive framework for digital assets that would have more authority than staff guidance.
• →The framework aims to clarify how federal securities laws apply to cryptocurrencies and tokens.
• →This represents a formal step toward establishing clearer regulatory standards for the crypto industry.
• →The proposal could impact how digital assets are classified and regulated going forward.
• →The framework would provide more definitive guidance than previous informal SEC positions.