The SEC released the sweeping interpretation, with the CFTC joining and committing to administer the Commodity Exchange Act consistently with the SEC’s analysis. The framework categorizes digital assets into five groups: digital commodities, digital collectibles, digital tools, stablecoins, and digital securities.
The interpretation addresses specific industry pain points, including airdrops, protocol mining, protocol staking, and the wrapping of non-security crypto assets. It also outlines how a non-security crypto asset may become subject to an investment contract analysis and how that classification may cease, marking a departure from positions associated with the prior administration.
SEC Chairman Paul S. Atkins stated the interpretation provides a "clear understanding of how the Commission treats crypto assets under federal securities laws" after more than a decade of uncertainty.
"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," Atkins said.
CFTC Chairman Michael S. Selig described the joint action as ending a "prolonged wait" for American builders and entrepreneurs seeking clarity on the status of crypto assets under federal securities and commodity laws.
"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 release noted.
The interpretation will be published on SEC.gov and in the Federal Register.