The SEC described the interpretation as "a major step in the Commission's efforts to provide greater clarity regarding the Commission's treatment of crypto assets." The CFTC joined the guidance and said it will administer the Commodity Exchange Act consistent with the SEC's interpretation.
SEC Chairman Paul S. Atkins said the action follows "more than a decade of uncertainty" over the status of digital assets. "This is what regulatory agencies are supposed to do: draw clear lines in clear terms," Atkins said.
Atkins said the interpretation "acknowledges what the former administration refused to recognize – that most crypto assets are not themselves securities." He added that "it reflects the reality that investment contracts can come to an end."
CFTC Chairman Michael S. Selig said "American builders, innovators, and entrepreneurs have awaited clear guidance on the status of crypto assets under the federal securities and commodity laws," and that "[w]ith today's interpretation, the wait is over."
Selig described the joint action as reflecting "a shared commitment to developing workable, harmonized regulations for the new frontier of finance."
According to the release, the interpretation addresses how a "non-security crypto asset"—defined as "a crypto asset that itself is not a security"—may become subject to, and cease to be subject to, an investment contract. It also clarifies the application of federal securities laws to airdrops, protocol mining, protocol staking, and the wrapping of non-security crypto assets.
The SEC said the interpretation complements "Congressional endeavors to codify a comprehensive market structure framework into statute." Atkins said he looks forward to implementing bipartisan market structure legislation "with Chairman Selig in the near future." The interpretation will be published on SEC.gov and in the Federal Register.