According to Milk Road, the SEC's latest guidance clarifies that crypto tokens are less likely to be classified as securities if they are not marketed as investments and provide functional utility on a decentralized network, beyond just serving as a medium of exchange (source: Milk Road, June 4, 2025). This regulatory framework directly affects token listings on major exchanges and could influence liquidity, compliance requirements, and trading strategies for both new and existing tokens. Traders should monitor how these clarified rules might impact token classification, exchange delistings, and overall market volatility, especially as exchanges adapt compliance standards to avoid regulatory risk.