classification

The U.S. Securities and Exchange Commission (SEC), in a joint interpretive release with the Commodity Futures Trading Commission (CFTC) on March 17, 2026, officially clarified that the majority of cryptocurrency assets are not classified as securities. 

New Token Taxonomy
The SEC now categorizes digital assets into five distinct groups to provide a coherent regulatory map: 
Digital Commodities: Assets whose value is driven by network utility and supply-demand dynamics rather than managerial efforts. This category now includes Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and XRP.
Digital Collectibles: Items such as NFTs linked to art, music, or in-game assets, which are generally presumed not to be securities.
Digital Tools: Utility-based assets functioning as memberships, credentials, or identity badges.
Payment Stablecoins: Stablecoins issued by permitted issuers under the GENIUS Act are officially excluded from being classified as securities.
Digital Securities: Traditional financial instruments (stocks, bonds, notes) that have been tokenized remain under SEC jurisdiction. 

Clarification on Network Activities
The guidance explicitly excludes several core blockchain functions from being treated as investment contracts: 
Protocol Staking: Most forms of staking do not involve the offer or sale of a security.
Protocol Mining: Clarified as a non-security activity.
Airdrops: Generally do not constitute an "investment of money" under the Howey Test.
Wrapping Assets: The process of wrapping a non-security crypto asset is also not considered a securities transaction. 

Shift in Regulatory Stance
Joint Oversight: The CFTC will now serve as the primary regulator for the 16 assets officially named as "digital commodities" in the secondary market.
End of "Enforcement-First": Under SEC Chair Paul Atkins, the agency has pivoted toward providing clear rules before pursuing litigation, marking a major departure from the previous administration's approach.
Investment Contract Context: While a token itself may be a commodity, the SEC notes that the way it is sold (e.g., through specific promises of profit by an issuer) can still trigger securities laws. 

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