SEC Chair Atkins Proposes Token Taxonomy Excluding Many ICOs from SEC Oversight
On December 9, 2025, during the Blockchain Association policy summit, SEC Chair Paul Atkins outlined a new token taxonomy and classifications for initial coin offerings (ICOs). According to Atkins, three categories of tokens—network tokens, digital collectibles, and digital tools—would not be treated as securities and thus would lie outside the SEC's jurisdiction.
Only tokenized securities, which are on‑chain representations of existing securities, would remain under SEC oversight in relation to ICOs. The ICOs falling into the aforementioned three non-securities categories would instead be overseen by the Commodity Futures Trading Commission (CFTC).
This stance marks a potential revival of ICO fundraising in the U.S., even in the absence of a market structure bill. Project Crypto may facilitate this renewed ICO activity by providing agency exemptions and safe harbor provisions.
Under this new taxonomy, most crypto tokens would not be regulated by the SEC but would come under the purview of the CFTC, reflecting a shift from the regulatory approach during the 2017 ICO boom when the SEC pursued enforcement actions against unregistered securities.
Additionally, Coinbase recently launched a platform for ICOs after acquiring Echo for $375 million in October, offering token offerings to U.S. retail investors.
