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RegulationVerified InsightPublished 03 May 2026 · 14:00 GMT
SEC Finalizes Rule on Token Classification
Blockchain News Summary
The U.S. Securities and Exchange Commission published its long-awaited framework distinguishing payment tokens, utility tokens, and security tokens — with bright-line tests at last.
The new rule, effective in 90 days, codifies a three-tier framework that issuers and secondary venues will use to determine ongoing reporting obligations.
Payment tokens with sufficiently decentralized governance and no centralized issuer obligations are explicitly outside SEC jurisdiction. Utility tokens with consumptive use cases get a safe harbor with conditions on liquidity and disclosure. Security tokens remain fully within Reg D / Reg A frameworks.
Legal teams at Coinbase and Kraken signaled compliance plans within 30 days.