#GateSquare$50KRedPacketGiveaway 1. Defining "Project Crypto" & Token Taxonomy

A major hurdle has been the ambiguity of the Howey Test. The SEC is now working on "Project Crypto," which aims to:
Establish a clear taxonomy: Distinguishing between security tokens, payment stablecoins (now largely viewed as non-securities), and utility coins.
Define "Exit Ramps": Providing guidance on when a crypto asset is no longer considered part of an investment contract.
Tokenization Guidance: Recent January 2026 statements clarify how "tokenized securities" (digital representations of stocks or bonds) must comply with existing federal laws.
2. Enhanced Disclosure & Transparency
To combat fraud and "pump-and-dump" schemes, the reform focuses on:
Materiality-Based Disclosures: Companies must provide detailed tech and financial risks, but the SEC is also looking to simplify these requirements to ensure they are scalable for smaller startups.
Standardized Reporting: Aligning U.S. standards with global trends like the EU's MiCA to ensure international market integrity.
3. Exchange Accountability & Market Infrastructure
The SEC is moving toward a "Market Infrastructure" model, likely supported by upcoming Congressional legislation. Key updates include: