The SEC Plans to Advance "Token Classification Framework" to Define Securities Attributes in the Cryptocurrency Space

BlockBeats News, November 12, U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins outlined his “Token Classification Framework” plan to clearly distinguish which cryptocurrencies are considered securities. At the same time, the SEC is advancing digital asset regulation in a new way. Paul Atkins stated that the framework will be based on the Howey Test. The Howey Test originates from a 1946 U.S. Supreme Court ruling, and the SEC often refers to this test to determine if an asset constitutes an investment contract, and therefore, is further considered a security. Paul Atkins then added that cryptocurrencies can be part of an investment contract, but this does not mean they will always be.