The US Securities and Exchange Commission (SEC) will soon begin developing a formal classification system for digital assets to clarify which cryptocurrencies are considered securities, its chairman, Paul Atkins, announced Wednesday.
In remarks prepared for a conference on financial technology, Atkins said the agency would "consider establishing a token taxonomy" based on legal principles to distinguish securities from commodities, according to a Reuters report on Wednesday.
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This move, which recognizes "the limiting principles of our laws," responds directly to a long-standing demand from the crypto industry for greater regulatory clarity.
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Atkins also noted that the SEC would consider a package of exemptions to create a "tailored offering regime" for digital assets considered securities, in line with the congressional bill.