The Securities and Exchange Commission (SEC) is considering the possibility of creating a “classification of digital currencies”, according to its chairman Paul Atkins.

Paul Atkins, chairman of the U.S. Securities and Exchange Commission (SEC), announced Wednesday that he is exploring the possibility of initiating a “digital currency classification” with the federal regulator, as part of his efforts to clarify the classification of specific digital assets.

SEC Chairman Paul Atkins Considers Classification of Digital Currencies

Yesterday, Nov. 12, while attending the Federal Reserve’s Financial Technology Conference in Philadelphia, Atkins said he plans to create a classification for digital currencies “based on the long-standing Howey Test analysis of investment contracts” as the next step in the “Project Crypto” initiative.

While Paul Atkins – Chairman of the SEC – confirmed that the proposed classification is intended to complement the crucial efforts of Congress and not replace them, indicating that he believes that the majority of digital currencies do not represent securities, because digital assets, including digital goods, digital collectibles and digital tools – according to what Atkins announced – do not qualify to be considered securities; Digitally represented securities (Tokenized Securities) meet these requirements because they “represent ownership of an instrument included in the definition of securities and are managed on the blockchain”.

Atkins added: “The committee’s reasonable approach to digital currencies will not alone determine the fate of the market or any particular project, but rather the market will decide that. ” He continued: “But this approach will help ensure that the United States remains an arena that allows the public to experiment and learn, to fail and succeed, under rules that are both clear and fair. »

Draft New Crypto Market Architecture Outlines Collaboration Between SEC and CFTC

Atkins’ statements come days after Republican Senate Agriculture Committee Chairman John Boozman and Democratic Senator Cory Booker announced a joint bill to discuss the structure of crypto markets. The draft states that the Securities and Exchange Commission (SEC) must cooperate with the Commodity Futures Trading Commission (CFTC) to “issue necessary joint regulations.”

Bozeman noted, “As Congress works to expand the committee’s powers to oversee trading in digital assets classified as commodities, there remains a need to ensure the tools, personnel, and resources necessary to carry out the new tasks with its current responsibilities are available.

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