The U.S. Securities and Exchange Commission just dropped a fresh roadmap.
The plan, dubbed “Project Crypto” will clear the fog around which digital tokens get the regulatory red carpet and which get to strut freely as collectibles or practical tools.
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Leading this charge with a wink and a nod is SEC Chairman Paul Atkins, who spilled the beans on finally untangling the decade-long crypto classification chaos.
If tokens are investment contracts, the SEC keeps the grip
The gist? Not every shiny digital token is a security, and that’s okay.
Atkins laid out a token taxonomy that plays by function and buyer expectations, making a clean split, digital commodities and network tokens like Bitcoin are out of the SEC’s crosshairs.
NFTs? They get a hall pass because buyers aren’t in it just for profit. And nifty digital badges, think memberships, tickets, or identity tokens, also dodge SEC oversight since they serve practical gigs.
Atkins threw down the legal gauntlet on the Howey test, the classic yardstick for spotting investment contracts, explaining that just because a token was once a security doesn’t sentence it forever.
Once issuers stop promising profits or call it quits, those tokens can shed their security status and keep tradin’ like digital rebels.
But for tokens still wrapped in investment contracts, the SEC keeps a firm but fair grip.
New crypto regulation for innovation and investor protection
This isn’t a laissez-faire free-for-all. Fraud still rings the SEC’s alarm bells loud and clear, so anti-fraud laws will slap down bad actors, even if their tokens have escaped the “security” label.
Begun last July with a push from Commissioner Hester Peirce, Project Crypto aims to map out a fair, transparent playing field for all crypto players, from coders and creators to investors and intermediaries.
Collaboration is the name of the game, with the SEC jawboning Congress, the Commodity Futures Trading Commission, and banking watchdogs to cook up a regulatory stew that nourishes innovation without devouring investor protections.
Clear rules from the SEC, CFTC, Treasury, and IRS
Outside the SEC arena, the Senate Agriculture Committee unveiled a draft bill aiming to crown the CFTC as the overseer for digital asset commodities like Bitcoin and Ethereum.
The U.S. Treasury and IRS issued a game-changing advisory letting crypto exchange-traded products safely stake assets and share the spoils with retail investors, tax-free.
So, what’s the takeaway for crypto enthusiasts? The regulatory winds are shifting towards clarity, fairness, and some good old-fashioned American grit.
The era of cryptic crypto rules might be winding down, making way for a future where digital assets can flourish under a watchful but sensible eye.
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.
Cryptocurrency and Web3 expert, founder of Kriptoworld
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With years of experience covering the blockchain space, András delivers insightful reporting on DeFi, tokenization, altcoins, and crypto regulations shaping the digital economy.
📅 Published: November 17, 2025 • 🕓 Last updated: November 17, 2025
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