US Regulators Redefine Crypto Rules, Signal Most Tokens Fall Outside Securities Laws

Regulations

US regulators issued long-awaited guidance clarifying how federal securities and commodities laws apply to digital assets, signaling a significant shift in the government’s approach to overseeing the crypto industry.

Key Takeaways

SEC and CFTC issued joint guidance on crypto regulation.
Most crypto assets are not classified as securities.
New framework introduces a token taxonomy across asset types.
Rules clarify treatment of staking, mining, airdrops and wrapping.
Guidance aims to align oversight between the two agencies.
Regulators Draw Clearer Lines for Crypto Industry.

The Securities and Exchange Commission and Commodity Futures Trading Commission said in a joint interpretation that most crypto assets are not securities, providing a clearer framework for how tokens, transactions and related activities will be regulated.

The interpretation marks one of the most comprehensive efforts by US regulators to define how existing laws apply to digital assets, after years of legal ambiguity and enforcement-driven policy.

SEC Chair Paul Atkins said the framework provides “clear lines in clear terms,” acknowledging that previous regulatory approaches failed to recognize the distinction between crypto assets themselves and the investment contracts built around them.

The guidance introduces a structured classification system for digital assets, distinguishing between categories such as digital commodities, stablecoins, collectibles, tools and digital securities. This taxonomy is intended to help market participants determine which regulatory regime applies to specific assets and use cases.

Investment Contracts May Evolve Over Time

A central element of the interpretation is the clarification that a crypto asset can be part of an investment contract — and therefore subject to securities laws – without being a security itself.

Regulators emphasized that such investment contracts can also “come to an end,” meaning that a token initially sold under a securities framework may later fall outside that classification as a network matures.

This distinction has been a key point of contention in past enforcement actions and legal disputes, particularly around whether tokens should be permanently classified as securities based on their initial distribution.

Guidance Extends to Staking, Mining and Airdrops

The framework also provides specific clarity on how federal laws apply to common crypto activities, including staking, mining, airdrops and token wrapping.

By addressing these areas directly, regulators are attempting to reduce uncertainty for developers, investors and platforms that have operated in a fragmented regulatory environment.

The agencies indicated that market participants should review the interpretation closely to understand how jurisdiction is shared between the SEC and CFTC, with the latter expected to oversee digital commodities under the Commodity Exchange Act.

Shift Toward Coordinated Oversight

The joint nature of the guidance reflects a broader effort to harmonize regulatory oversight across agencies that have historically taken different approaches to crypto.

CFTC Chair Michael Selig said the interpretation ends a prolonged period of uncertainty for “builders, innovators and entrepreneurs,” adding that both agencies are committed to creating a regulatory environment that supports growth while maintaining safeguards.

The move is also positioned as a bridge toward future legislation, as Congress continues to debate a comprehensive market structure framework for digital assets.

Outlook

The clarification that most crypto assets are not securities could have significant implications for the industry, potentially reducing legal risks for exchanges, issuers and developers.

By establishing clearer boundaries between securities and commodities, the guidance may also accelerate institutional participation, which has been constrained by regulatory uncertainty.

At the same time, the framework leaves room for continued oversight, particularly where tokens are tied to investment contracts or capital-raising activities.

The joint action by the SEC and CFTC suggests that US regulators are shifting from enforcement-first tactics toward a more structured and predictable approach – one that could reshape how digital assets are integrated into the broader financial system.

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Author

Alexander Zdravkov is a person who always looks for the logic behind things. He has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.