SEC Chair Sets Out Plans For Crypto Taxonomy To Define Digital Asset Classification

In recent statements made by Chair Paul Atkins, the US Securities and Exchange Commission (SEC) announced a strategic plan targeted at giving much-needed clarity on the classification of crypto assets. Atkins highlighted the forthcoming consideration of establishing a “token taxonomy” within the Commission, a structured framework rooted in legal rationale to discern between securities and commodities. He emphasized the importance of adhering to “limiting principles” in laws and regulations to ensure a cohesive approach towards crypto asset classification. Atkins commended the efforts of Commissioner Hester Peirce, particularly her work in providing a transparent and economically grounded treatment of crypto assets under federal securities laws. The Chair emphasized three key themes in his address: the significance of a clear token taxonomy, the application of the Howey test in recognizing the temporary nature of investment contracts, and the practical implications for innovators, intermediaries, and investors in the evolving crypto landscape. Addressing the prevalent issue of distinguishing between securities and non-securities in the crypto space, Atkins noted that while most tokens are not inherently securities, certain tokens may have been sold within the context of an investment contract during a securities offering. However, he refuted the notion that every token involved in an investment contract perpetually retains its security status, emphasizing the importance of contextual analysis and recognizing the dynamic nature of investment contracts. In his remarks, Atkins also underscored the challenges faced by developers, exchanges, custodians, and investors in navigating the crypto ecosystem, where tokens serve various functions beyond traditional securities. He criticized the previous administration’s “blanket treatment” of all tokens as securities, highlighting the need for a more nuanced and practical approach to regulation to prevent stifling innovation and driving it offshore. In alignment with ongoing legislative efforts, Atkins reassured that the SEC aims to complement, rather than replace, existing crypto legislative initiatives. He emphasized the agency’s commitment to robust fraud enforcement and the development of clearer regulatory guidelines to ensure the safety of US investors. In closing, Atkins emphasized the importance of forward-looking regulatory practices, rejecting a stagnant approach rooted in fear of change. He reiterated the SEC’s commitment to delineating clear boundaries and providing transparent guidance. The statement concluded: That is what Project Crypto is about. That is what the Commission should be about. And that is the commitment I make to you today as Chairman: we will not let fear of the future trap us in the past.

Dogecoin (DOGE) Maintains Support Amid Market Weakness, Bulls Seek Confirmation Bounce

Dogecoin corrected some gains and traded below $0.1780 against the US Dollar. DOGE is now holding the $0.1680 support and might aim for a fresh increase. DOGE price started a fresh downside correction below $0.1780. The price is trading below the $0.1760 level and the 100-hourly simple moving average. There is a bearish trend line forming with resistance at $0.1760 on the hourly chart of the DOGE/USD pair (data source from Kraken). The price could aim for a fresh increase if it remains stable above $0.1680. Dogecoin price started a downside correction after it failed to clear $0.1880, like Bitcoin and Ethereum. DOGE declined below $0.1820 and $0.180 levels. There was a move below the 50% Fib retracement level of the upward move from the $0.1568 swing low to the $0.1858 high. However, the bulls remained active near the $0.1680 support. The price is again rising above $0.1720. Dogecoin price is now trading below the $0.1780 level and the 100-hourly simple moving average. Immediate resistance on the upside is near the $0.1760 level. There is also a bearish trend line forming with resistance at $0.1760 on the hourly chart of the DOGE/USD pair. The first major resistance for the bulls could be near the $0.1820 level. The next major resistance is near the $0.1880 level. A close above the $0.1880 resistance might send the price toward $0.1920. Any more gains might send the price toward $0.20. The next major stop for the bulls might be $0.2120. If DOGE’s price fails to climb above the $0.1820 level, it could continue to move down. Initial support on the downside is near the $0.170 level. The next major support is near the $0.1680 level and the 61.8% Fib retracement level of the upward move from the $0.1568 swing low to the $0.1858 high. The main support sits at $0.1640. If there is a downside break below the $0.1640 support, the price could decline further. In the stated case, the price might slide toward the $0.1550 level or even $0.1520 in the near term. Technical Indicators: Hourly MACD – The MACD for DOGE/USD is now gaining momentum in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for DOGE/USD is now above the 50 level. Major Support Levels – $0.1700 and $0.1680. Major Resistance Levels – $0.1760 and $0.1820.