SEC Sends White House ‘Token Taxonomy’ Proposal to Clarify Crypto Regulation

The United States has long relied on the Supreme Court’s Howey Test to determine whether a crypto asset constitutes an investment contract, with the SEC previously defining the boundaries largely through enforcement actions and staff statements. Trump called for clear regulatory boundaries on January 23, 2025. This interpretation comes from the Commission itself and, while neither congressional legislation nor a binding rule, carries more policy weight than the 2019 staff framework.

The SEC and Commodity Futures Trading Commission issued a joint interpretation on March 17, 2026, and submitted it to the White House Office of Management and Budget for review on March 20. It remained listed as pending as of March 23. The framework divides tokens into five categories. Four—digital commodities, digital tools, digital collectibles including NFTs, and stablecoins—are generally not securities, while the fifth, digital securities, remains subject to federal securities laws.