A16z Crypto has proposed seven categories for tokens in a recent filing with the SEC, highlighting the need for regulatory clarity in the cryptocurrency space. The categories include Network Tokens, Security Tokens, Company-Backed Tokens, Collectible Tokens, Arcade Tokens, Asset-Backed Tokens, and Memecoins. A key recommendation is that when control is eliminated in token operations, the application of securities laws should be limited. For network tokens, a control-based decentralization framework should differentiate between a network and a company, preventing insiders from exploiting information asymmetries. Asset-backed tokens, such as stablecoins, require their own regulatory frameworks. Collectible tokens are likened to art or music, while arcade tokens serve as in-game currencies. The filing emphasizes that regulators need to address potential risks without imposing unnecessary restrictions, ultimately paving the way for a more robust and secure crypto industry.

Source 🔗