SEC Eases Crypto Token Classification to Boost Innovation
The U.S. Securities and Exchange Commission (SEC) has announced a significant regulatory shift that could reduce the number of digital tokens treated as securities under U.S. law, potentially reshaping the legal landscape for cryptocurrencies and blockchain-based projects. The announcement, made on August 20, 2025, indicates that most digital tokens—including major ones like Bitcoin and Ethereum—are unlikely to be classified as investment contracts under current SEC guidance. This development aims to reduce legal uncertainty for developers, exchanges, and investors, thereby promoting innovation and capital formation in the U.S. crypto space [1].
According to the updated stance, the SEC is moving toward a model where only a limited…
