SEC Chair Paul Atkins Discloses Token Classification Framework Based on Howey Test

Securities and Exchange Commission Chair Paul Atkins disclosed a token classification framework on Nov. 12 to determine which cryptocurrencies qualify as securities, BlockBeats reports. The framework will build upon the Howey Test, a 1946 Supreme Court standard the SEC uses to assess whether an asset constitutes an investment contract. Atkins noted cryptocurrencies may form part of an investment contract, though their classification is not permanently fixed.