Bitcoin Magazine
SEC, CFTC Declare Most Crypto Assets Not Securities in Landmark Guidance
U.S. regulators took a decisive step toward reshaping crypto oversight yesterday, with the Securities and Exchange Commission and the Commodity Futures Trading Commission jointly issuing new guidance that states most digital assets are not securities.
The 68-page interpretation, released Tuesday, outlines how federal securities laws apply to cryptocurrencies and introduces a formal classification system for different types of tokens. The move marks a shift in tone and policy from prior years, when regulators often relied on enforcement actions and broad interpretations of securities law.
SEC Chair Paul Atkins framed the change as a return to clarity and statutory limits.
“After more than a decade of uncertainty, this interpretation will provide market participants with a clear understanding of how the Commission treats crypto assets,” he said. Speaking at the DC Blockchain Summit in Washington, Atkins added, “We’re not the ‘securities and everything commission’ anymore.”
At the center of the guidance is a “token taxonomy” that divides digital assets into several categories. According to the agencies, stablecoins, digital commodities, and “digital tools” are not securities.
Digital collectibles, including tokenized representations of art, media, or cultural items, also fall outside securities classification.
JUST IN: SEC Chair Paul Atkins announces that “digital commodities, digital collectables, digital tools and payment stablecoins” are not securities. pic.twitter.com/UZr5pTarg1— Bitcoin Magazine (@BitcoinMagazine) March 17, 2026
Only one category, described as “digital securities,” remains subject to traditional securities laws. These are assets that mirror existing financial instruments, such as equities or debt, but are issued and traded using blockchain infrastructure.
The framework attempts to resolve a long-running debate over how to apply the SEC v. W.J. Howey Co. standard, known as the Howey Test, to crypto markets. That test determines whether a transaction qualifies as an investment contract based on expectations of profit derived from the efforts of others.
Under the new interpretation, a digital asset that is not inherently a security can become one if it is marketed as an investment in a common enterprise with promises of profit tied to managerial efforts. The guidance also clarifies that such a designation is not permanent. Once those promises are fulfilled or no longer relevant, the asset may cease to be treated as a security.
The agencies also addressed specific crypto activities that have drawn regulatory scrutiny. Protocol mining, staking, and certain airdrops do not constitute securities transactions under the new framework. The guidance states that airdrops, in particular, may not meet the “investment of money” requirement under the Howey Test.
JUST IN: CFTC and