SEC Plan Classifies Bitcoin and Ethereum as Non-Securities
On November 12, 2025, SEC Chair Paul Atkins unveiled the SEC token classification plan to resolve long-standing legal ambiguities. The SEC token classification plan uses the Howey Test to categorize digital assets by their function and decentralization. Under this proposal, fully decentralized networks like Bitcoin (BTC), Ethereum (ETH) and Solana (SOL) qualify as non-securities. It also distinguishes digital collectibles (NFTs) and utility tokens from securities, while tokenized real-world assets (RWA) remain classified as securities. This move offers regulatory clarity and could lower compliance risks. With bipartisan support and the pending CLARITY Act, the plan is poised to accelerate institutional adoption, market stability and Web3 innovation.
Bullish
The SEC token classification plan provides regulatory clarity by explicitly defining Bitcoin, Ethereum and other key assets as non-securities. This reduces legal uncertainty and compliance risks. Historically, clear guidance—such as the SEC’s 2018 statements on Ethereum—has led to price rallies and greater institutional participation. With bipartisan support and the CLARITY Act, the plan is likely to attract more institutional capital and accelerate market development. In the short term, traders can expect positive price reactions and increased trading volumes. In the long term, clearer rules could foster sustainable growth, deeper liquidity and broader adoption of digital assets.