Exploring SEC Chairman's Classification of Crypto Assets: NFTs, Utility Tokens, and Digital Tools Deemed Non-Securities

BlockBeats News, November 13, Securities and Exchange Commission (SEC) Chairman Paul Atkins today outlined his cryptocurrency "Token Classification Framework" plan to clarify which cryptocurrencies are considered securities. In the SEC's press release, Paul Atkins mentioned his current views on various types of crypto assets, summarizing that Atkins only emphasizes tokenized products as securities, while non-fungible tokens (NFTs), network tokens (ETH, SOL), and "functioning" "digital tools" (such as identity verification) are not considered securities. His viewpoints are detailed as follows:

"Digital Commodities" or "Network Tokens" are not securities. Their value is inherently related to the programmed operation of a "fully functional" and "decentralized" crypto system and arises from it, rather than from the expectation of profit from the critical managerial efforts of others;

"Digital Collectibles" are not securities. These assets are intended for collecting and/or use by individuals, may represent or grant holders rights to digital expressions or references to artworks, music, videos, trading cards, in-game items, or internet memes, characters, events, or trends. Buyers of digital collectibles do not expect to profit from the daily managerial efforts of others;

"Digital Tools" are not securities. These crypto assets have practical functions, such as memberships, tickets, credentials, ownership proofs, or identity badges, and buyers of digital tools do not expect to profit from the daily managerial efforts of others;

"Tokenized Securities" are currently and will continue to be considered securities. These crypto assets represent ownership of financial instruments listed in the "securities" definition, which is maintained on a blockchain network.

Paul Atkins stated that this list is not exhaustive and will be further refined.