The Securities and Exchange Commission issued an interpretation on March 17, 2026, clarifying how federal securities laws apply to crypto assets and transactions involving them. The Commodity Futures Trading Commission joined the interpretation. The core position: the interpretation affirms that most crypto assets are not themselves securities, a stance the SEC under its prior leadership declined to adopt.

The interpretation introduces a token taxonomy covering digital commodities, digital collectibles, digital tools, stablecoins, and digital securities. It also addresses how a non-security crypto asset — defined as a crypto asset that itself is not a security — may become subject to, and may cease to be subject to, an investment contract. That last point is significant: the interpretation explicitly recognizes that investment contracts can come to an end, a concept with direct consequences for how issuers and secondary-market participants structure and exit token arrangements.

The guidance also addresses specific market activities that have long occupied a legal gray zone, including airdrops, protocol mining, protocol staking, and the wrapping of a non-security crypto asset under federal securities laws.

The CFTC's participation is substantive, not ceremonial. The agency joined the interpretation to signal that it and its staff will administer the Commodity Exchange Act consistently with the SEC's interpretation — a coordination move designed to reduce jurisdictional conflict between the two regulators over crypto markets.

SEC Chairman Paul S. Atkins said the interpretation acknowledges what the former administration refused to recognize — that most crypto assets are not themselves securities — and reflects the reality that investment contracts can come to an end. Atkins described the guidance as a bridge for entrepreneurs and investors while Congress advances bipartisan market structure legislation.

CFTC Chairman Michael S. Selig said that for far too long, American builders, innovators, and entrepreneurs had awaited clear guidance on the status of crypto assets under the federal securities and commodity laws. Both chairs indicated they expect to work together on implementing forthcoming congressional legislation.

The interpretation will be published on SEC.gov and in the Federal Register.