Coinspeaker
Nov 12, 2025
8 0

SEC Chair Proposes Token Framework for Decentralizing Digital Assets

On November 12, SEC Chairman Paul Atkins proposed a token classification framework to help digital assets transition from securities status as their networks become decentralized.

  • The "Project Crypto" initiative defines four categories: digital commodities, digital collectibles, digital tools, and tokenized securities.
  • A "sunset" provision allows tokens to lose their investment contract status once they demonstrate sufficient decentralization.

Regulatory Harmonization and Trading Exemptions

  • The proposal allows for secondary trading of post-contract assets on alternative venues regulated by entities like the CFTC, reflecting market expansions such as CME Group's Solana options.
  • The framework aims to streamline registration for assets still considered securities, exemplified by Figure's SEC-registered YLDS token on the Sui blockchain.

Industry Context and Development

  • This framework continues from the "Project Crypto" directive launched in July, addressing the halt in token sales for US retail investors since 2018.
  • Coinbase's new token sales platform now includes US retail participation, aligning with this regulatory shift.
  • Prior work by Commissioner Hester Peirce influenced the proposal, amidst industry anticipation for clearer regulations as seen with Canary Capital's Litecoin ETF filings.