The SEC's Division of Corporation Finance is proposing something that could actually matter: a clear taxonomy for crypto assets that defines when they stop being considered investment contracts. Director Moloney is leading the push, and what's interesting here is the shift in approach.
For years, the SEC's strategy has been regulation by enforcement—sue first, clarify later. This proposal suggests a different path: create categories, establish criteria, and let projects know where they stand before they launch. The practical implication is huge. Right now, most crypto projects exist in legal limbo.
They don't know if their token will be classified as a security until the SEC decides to go after them. A taxonomy would theoretically provide a roadmap—if you meet X, Y, Z conditions, you're no longer an investment contract. That would let legitimate builders operate without constant legal exposure.
Whether this actually happens is another question entirely, but the fact that it's even being proposed from within the SEC suggests the agency might be rethinking the scorched-earth approach.
