Utility Token Classification

Definition ∞ Utility token classification is the process of determining whether a digital asset functions primarily to provide access to a product or service within a blockchain ecosystem. This classification distinguishes tokens used for practical application, like paying for network fees or accessing features, from those primarily representing an investment in an enterprise. Regulatory bodies often apply tests, such as the functional utility test, to make this distinction. A utility classification typically means fewer regulatory burdens compared to security tokens.
Context ∞ The regulatory distinction of utility tokens from securities remains a significant area of debate and evolving guidance globally. Projects seek this classification to avoid stringent securities registration requirements, fostering innovation and adoption. Regulators continue to refine criteria, considering factors like network decentralization and the actual use cases of tokens, to provide clearer pathways for compliant digital asset development.

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→Compliance Framework

→SEC Staff Guidance

→Consumptive Utility

SEC Staff Grants No-Action Relief to Fuse Utility Token

The SEC Staff's second utility token No-Action Letter provides a pragmatic, use-case-driven blueprint for structuring non-security digital assets.

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→Decentralized Physical Infrastructure

→Exchange Act Registration

→Securities Act Exemption

SEC Staff Grants No-Action Relief for DePIN Network Token Distributions

This precedent-setting No-Action Letter functionally exempts programmatic utility tokens from registration, creating a vital regulatory safe harbor for DePIN models.

→Programmatic Transfer

→Non-Security Status

→Digital Asset Taxonomy

SEC Staff Grants No-Action Relief for DePIN Token Programmatic Transfers

The staff's targeted no-action relief establishes a critical functional utility test for network tokens, de-risking infrastructure-focused issuance models.

Utility Token Classification

SEC Staff Grants No-Action Relief to Fuse Utility Token

SEC Staff Grants No-Action Relief for DePIN Network Token Distributions

SEC Staff Grants No-Action Relief for DePIN Token Programmatic Transfers

Incrypthos

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