SEC promotes a new framework for "de-securitization" of crypto assets, with four major classification systems potentially reshaping the US regulatory landscape

February 14 News, the U.S. Securities and Exchange Commission (SEC) Department of Corporation Finance is accelerating a major regulatory reform for digital assets. Director Moloney stated that the department is developing a new classification system for cryptocurrencies to clarify under what circumstances tokens can no longer be considered “investment contracts,” thereby removing their security status and providing a clearer compliance path for the industry.

This initiative, called “Project Crypto,” was first proposed by SEC Chair Atkins at the end of 2025 and aims to address the “legal gray area” faced by companies during issuance and disclosure processes. In a recent statement, Moloney revealed that the new regulatory approach would allow tokens to transition from securities to “non-securities” once certain conditions are met. For example, when the issuer no longer performs key management functions or when the network achieves a high degree of decentralization, the relevant tokens can change their status.

To support this reform, the SEC’s three main divisions jointly released a preliminary framework on January 28, dividing digital assets into four categories: digital commodities, digital collectibles, digital tools, and tokenized securities. For assets still classified as securities, regulators will also design more flexible issuance and sales rules to reduce compliance friction.

In addition to digital assets, the SEC is also advancing the modernization of disclosure regulations. The proposal to eliminate mandatory quarterly reports in favor of semi-annual disclosures has sparked widespread discussion. Supporters believe this will help companies shed short-term performance pressures and focus on long-term strategies; opponents worry that longer intervals between disclosures could amplify market volatility and increase insider trading risks. Moloney has instructed the team to draft related rules to provide companies with new options.

Furthermore, the SEC is speeding up the processing of backlog registration applications and reminding foreign private issuers that the Foreign Internal Affairs Accountability Act will automatically take effect on March 18, 2026, requiring relevant executives to report transactions according to U.S. standards. As the new framework is gradually implemented, the U.S. crypto regulatory environment may undergo a structural transformation.