The joint interpretation creates what the agencies call a "coherent token taxonomy" spanning five categories: digital commodities, digital collectibles, digital tools, stablecoins, and digital securities. The framework also addresses how a non-security crypto asset may become subject to an investment contract analysis and, in a break from the prior administration, how that classification may end.
"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," SEC Chairman Paul S. 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."
The interpretation specifically covers airdrops, protocol mining, protocol staking, and the wrapping of non-security crypto assets — areas where industry participants have long sought clarity from regulators.
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," Selig said. "With today's interpretation, the wait is over."
Atkins described the interpretation 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.