SEC Chair Paul Atkins Clarifies Cryptocurrency Classification Plan

According to BlockBeats, U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins has outlined a plan to classify cryptocurrencies, distinguishing which are considered securities. In a recent press release, Atkins shared his views on various crypto assets, emphasizing that tokenized products are securities, while non-tokenized NFTs, network tokens like ETH and SOL, and digital tools with practical functions, such as identity verification, are not. Atkins explained that digital commodities or network tokens are not securities, as their value is inherently linked to the operational functionality and decentralization of crypto systems, rather than profits derived from others' managerial efforts. Digital collectibles are also not considered securities. These assets are intended for collection or use, potentially representing rights to digital expressions or references of art, music, videos, trading cards, in-game items, or internet memes, characters, events, or trends. Buyers of digital collectibles do not expect profits from others' daily management. Digital tools, which include assets with practical functions like memberships, tickets, vouchers, proof of ownership, or identity badges, are not classified as securities. Purchasers of these tools do not anticipate profits from others' management efforts. Tokenized securities, however, are and will continue to be classified as securities. These crypto assets represent ownership of financial instruments listed under the definition of securities, maintained on a crypto network. Paul Atkins noted that this list is not exhaustive and will be further refined.