The SEC, under Chairman Paul Atkins, released interpretive guidance Tuesday that fundamentally shifts how the agency approaches digital assets. The core message: most crypto assets are not securities.
“We’re not the Securities and Everything Commission anymore,” Atkins declared at the DC Blockchain Summit to immediate applause.
The CFTC simultaneously confirmed it would administer the Commodity Exchange Act consistent with the SEC’s interpretation, marking unprecedented regulatory coordination between the two agencies.
TODAY
: The Commission issued an interpretation that clarifies the application of federal securities laws to crypto assets.
This is a major step to provide greater clarity regarding the Commission’s treatment of crypto assets.
Read the release here: https://t.co/DDykVLHZQI pic.twitter.com/zbLFS2JH6g
— U.S. Securities and Exchange Commission (@SECGov) March 17, 2026
The Five-Category Token Taxonomy
The SEC’s framework classifies digital assets into five distinct categories:
- Digital Commodities
- Assets deriving value from the programmatic operation of a crypto system rather than managerial promises. Bitcoin and Ethereum fall here.
- Digital Securities
- Traditional securities tokenized on blockchain. This is the only category remaining under SEC jurisdiction. Think tokenized stocks and Treasury bonds.
- Stablecoins
- Given their own classification, separate from securities.
- Digital Collectibles
- NFTs, meme coins, and creative digital works.
- Digital Tools
- Membership tokens, event tickets, digital identity credentials.
What’s Explicitly NOT a Security
The SEC specifically carved out:
- Protocol mining (including Bitcoin mining)
- Protocol staking
- Airdrops
- Wrapped non-security assets
This directly contradicts the Gensler-era approach that attempted to classify staking and airdrops under securities law.
Investment Contracts Can End
Perhaps the most significant shift: the SEC acknowledges that investment contracts are not permanent classifications.
An asset becomes a security when offered as an investment in a common enterprise with promised profits based on management efforts. But that status ends when “either the issuer has fulfilled its representations or promises or the issuer has failed to satisfy its representations or promises.”
Translation: tokens can graduate out of securities status as projects decentralize.
Safe Harbors Coming
Atkins previewed upcoming exemptions:
- Startups under $5M experimenting with crypto in their first four years
- Raises up to $75M via investment contracts involving certain crypto assets
- Decentralized projects once creators cease all essential managerial efforts
Formal rulemaking proposals expected “in a week or two,” with a 400+ page package coming.
Why This Matters for Institutional Adoption
This is the regulatory clarity institutions have demanded for years. The framework:
- Removes uncertainty that kept major players sidelined
- Legitimizes existing structures around staking and airdrops
- Creates a pathway for projects to achieve non-security status
- Aligns SEC and CFTC under a unified approach
“I think the signal is clear now that it’s time to build in the United States,” CFTC Chairman Mike Selig said.
The Bottom Line
After years of regulation-by-enforcement under the previous administration, the SEC has done what crypto has demanded: drawn clear lines in clear terms.
This isn’t legislation. It’s interpretive guidance that could theoretically be reversed by a future administration. But with bipartisan market structure bills advancing in Congress, the framework appears designed to hold until lawmakers codify it into law.
“Hold on to your seats,” Atkins told reporters. “Dozens of proposals” are coming.
The U.S. just sent a signal to the world: the regulatory environment has fundamentally changed.
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Recent Updates
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SEC and CFTC Issue Joint Final Rule: 16 Crypto Assets Officially Classified as Digital Commodities
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SEC Issues Historic Crypto Classification Framework: “Most Crypto Assets Are Not Securities”
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PayPal Brings PYUSD to 70 Markets, Targeting Cross-Border Payments in Emerging Economies
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Mastercard To Acquire BVNK for Up to $1.8 Billion in Largest Stablecoin Deal Ever
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