SEC Chair to Review Crypto Token Classification System
On Wednesday, Nov. 12, 2025, the Securities and Exchange Commission chair announced the agency will consider developing a system to classify digital assets and clarify when tokens qualify as securities. The proposal aims to provide a consistent basis for enforcement decisions that have varied in recent years, though no draft rules or timeline were released with the statement. The announcement heightens uncertainty for token issuers, exchanges, and investors: a formal classification framework could increase compliance costs and trigger registration or enforcement for many tokens, but it could also bring long‑sought legal clarity. Market participants should expect further guidance and industry pushback as the SEC weighs rulemaking versus case‑by‑case enforcement.