SEC Chair Paul Atkins recently shared his agency’s approach to combating digital asset fraud under its ‘Project Crypto’ initiative during a speech at the Federal Reserve Bank of Philadelphia. He outlined plans for updating the regulatory framework governing digital assets, including introducing a ‘token taxonomy’ based on the Howey test used by the SEC to determine if something is a security. This aims to clarify that while initial investment contracts may result in tokens trading freely even after they are considered complete. He also highlighted Commissioner Hester Peirce’s observation that tokenized securities might remain regulated, despite their initial contract forming during launch.