The head of the U.S. Securities and Exchange Commission said Wednesday the agency would soon consider establishing a "taxonomy" for digital assets to help distinguish when they can be considered securities.

"In the coming months, I anticipate that the Commission will consider establishing a token taxonomy" anchored in legal reasoning that distinguishes securities from commodities, SEC Chair Paul Atkins said, according to prepared remarks.

This will recognize that there are "limiting principles to our laws and regulations," he added.