According to Atkins, the goal is to differentiate between the types of cryptocurrencies, outlining which fall under securities law and which don\u2019t. The SEC is looking to take this approach amid broader support for legislative efforts underway in Congress.<\/p>\n
\n\u201cIn the coming months, I anticipate that the Commission will consider establishing a token taxonomy that is anchored in the longstanding Howey<\/em> investment contract securities analysis, recognizing that there are limiting principles to our laws and regulations,\u201d the SEC chair said.<\/p>\n<\/blockquote>\nWhile the agency continues to ensure market participants adhere to investor protection principles and laws, Atkins says most cryptocurrencies do not, in themselves, qualify as securities.<\/p>\n
<\/p>\n
So, what does Atkins think?<\/h2>\n
The SEC chair outlined four categories: digital commodities or network tokens, digital collectibles, digital tools and tokenized securities. <\/p>\n
It is the classification that Atkins says will help form a \u201ccoherent token taxonomy.\u201d<\/p>\n
\n\u201cThis framework follows months of roundtables, more than a hundred meetings with market participants, and hundreds of written submissions from the public,\u201d Atkins said.<\/p>\n<\/blockquote>\n
According to this classification, digital commodities, or network tokens, are not securities. The same applies to digital collectibles and digital tools, as buyers of these assets do not expect \u201cprofits from the essential managerial efforts of others.\u201d<\/p>\n
However, tokenized securities are securities as they represent ownership of a financial instrument.<\/p>\n
But Atkins says not every token that satisfies the investment contract classification at the time of its sale will remain a security forever.\u00a0\u00a0<\/p>\n
\n\u201cOnce the investment contract can be understood to have run its course, the token may continue to trade, but those trades are no longer \u201csecurities transactions\u201d simply by virtue of the token\u2019s origin story,\u201d he added.<\/p>\n<\/blockquote>\n
<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"
U.S. Securities and Exchange Commission chair Paul Atkins says the regulator is considering a new framework for classifying digital assets. Summary \u00a0Paul Atkins says the regulator is considering a new…<\/p>\n","protected":false},"author":1,"featured_media":2598,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-15881","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/15881","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=15881"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/15881\/revisions"}],"predecessor-version":[{"id":15882,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/15881\/revisions\/15882"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/2598"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=15881"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=15881"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=15881"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}