SEC Issues New Guidance: “Most Crypto Assets” Are Not Securities

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The U.S. Securities and Exchange Commission (SEC) has issued new guidance clarifying how federal securities laws apply to cryptocurrency assets, marking a major regulatory shift. The interpretation, released alongside the Commodity Futures Trading Commission (CFTC), aims to resolve long-standing uncertainty around how digital assets are classified. Officials say the move provides clearer rules for investors, builders, and institutions operating in the crypto space.

SEC introduces clearer crypto framework

Specifically, the SEC’s interpretation, shared by the agency in a press release on March 17, outlines how different types of crypto assets are treated under U.S. law.

It introduces a structured taxonomy covering categories such as digital commodities, stablecoins, digital collectibles, digital tools, and digital securities.

Indeed, the framework is designed to help market participants better understand which assets fall under securities regulations and which do not.

“Most crypto assets are not securities”

SEC Chairman Paul S. Atkins emphasized a key shift in the agency’s stance. He stated that “most crypto assets are not themselves securities,” highlighting a departure from earlier ambiguity in enforcement and interpretation.

Atkins added that the guidance is intended to “draw clear lines in clear terms” and provide a more predictable regulatory environment. As he explained:

“After more than a decade of uncertainty, this interpretation will provide market participants with a clear understanding of how the Commission treats crypto assets under federal securities laws. This is what regulatory agencies are supposed to do: draw clear lines in clear terms.”

Joint effort with CFTC

The interpretation was issued in coordination with the CFTC, signaling closer alignment between the two agencies. CFTC Chairman Michael S. Selig said the move ends years of uncertainty and supports innovation by establishing “clear and rational rules of the road.”

The collaboration also aims to harmonize oversight between securities and commodities regulators. As Selig highlighted:

“For far too long, American builders, innovators, and entrepreneurs have awaited clear guidance on the status of crypto assets under the federal securities and commodity laws. (…) With today’s interpretation, the wait is over.”

New rules for key crypto activities

The guidance also addresses how securities laws apply to specific crypto-related activities. This includes airdrops, staking, protocol mining, and token wrapping.

It further explains how a crypto asset that is not initially a security could become part of an investment contract and how that status may change over time.

Bridge toward broader legislation

Regulators described the interpretation as a step toward a more comprehensive market structure framework.

The SEC noted that the guidance complements ongoing efforts in Congress to formalize crypto regulation into law.

For now, the update provides immediate clarity while broader legislation continues to develop.

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