The interpretation establishes what the SEC described as "a coherent token taxonomy" covering digital commodities, digital collectibles, digital tools, stablecoins, and digital securities, according to the press release. It also addresses how a "non-security crypto asset" may become subject to, or cease to be subject to, an investment contract.
The guidance 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 CFTC said it will administer the Commodity Exchange Act consistent with the SEC's interpretation.
"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," SEC Chairman Paul S. Atkins said in the release. "This is what regulatory agencies are supposed to do: draw clear lines in clear terms."
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." He described the guidance as "an important bridge for entrepreneurs and investors as Congress works to advance bipartisan market structure legislation."
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." Selig said he and Atkins are "committed to fostering a regulatory environment that allows the crypto industry to flourish in the United States with clear and rational rules of the road."
Selig said the joint agency action reflects "a shared commitment to developing workable, harmonized regulations for the new frontier of finance." The interpretation will be published on SEC.gov and in the Federal Register, the release said.