The interpretation, which the SEC described as a "coherent token taxonomy," classifies crypto assets into five categories: digital commodities, digital collectibles, digital tools, stablecoins, and digital securities. The CFTC joined the interpretation and committed to administer the Commodity Exchange Act consistently with the SEC's analysis.
The framework also addresses how a non-security crypto asset may become subject to an investment contract analysis — and how that classification may end — a departure from positions associated with the prior administration, according to the release.
The guidance specifically covers airdrops, protocol mining, protocol staking, and the wrapping of non-security crypto assets, areas where, according to the SEC, industry participants have long sought clarity.
"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," Atkins said. "It also acknowledges what the former administration refused to recognize — that most crypto assets are not themselves securities. And it reflects the reality that investment contracts can come to an end."
CFTC Chairman Michael S. Selig called the joint action the end of a prolonged wait. "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," he said. "With today's interpretation, the wait is over."
Atkins described the guidance as a bridge while Congress advances bipartisan market structure legislation. Selig emphasized the agencies' joint commitment to "workable, harmonized regulations" for the digital asset sector. The interpretation will be published on SEC.gov and in the Federal Register, according to the release.