Crypto tokens that can pass a “Chuck-E-Cheese” test are likely to be exempt from securities registration requirements, a top SEC official said Dec. 12.

The Securities and Exchange Commission is increasingly hearing from companies interested in adding digital assets as a component of their business operations, Jonathan Ingram, deputy chief counsel for the SEC’s Division of Corporation Finance, told the D.C. Bar Association in Washington.

Closed, fully-functional business “ecosystems” that issue digital tokens through an initial coin offering may be able to avoid having to register their offerings as securities, Ingram said.

“The analogy I use is like the Chuck-E-Cheese...