Crypto News

SEC and CFTC Issue Landmark Framework to Classify Crypto Assets

By Telemac

Share

SEC and CFTC Issue Landmark Framework to Classify Crypto Assets

On March 17, 2026, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) jointly released an interpretation establishing, for the first time, a formal framework for classifying crypto assets under U.S. federal securities and commodities law. This announcement marks the end of more than a decade of regulatory uncertainty that had pushed many crypto companies to set up operations outside the United States. Both agencies explicitly stated that most crypto assets are not themselves securities, and that proof-of-stake staking is not a securities transaction. This joint clarification, the first of its kind since the 2017 DAO Report, represents a major turning point in how Washington approaches the digital assets ecosystem.

Background

The American crypto industry had been operating since 2017 under a case-by-case enforcement regime with no affirmative framework. The 2017 DAO Report established the conceptual framework known as the Howey test, but companies never received clear guidance on classifying their digital assets. This created a significant chilling effect: legal counsel recommended that clients establish themselves in Delaware or the Cayman Islands rather than risk SEC enforcement actions. Many projects voluntarily chose exile, setting up their servers and teams in more lenient jurisdictions such as Singapore, Malta, or the United Arab Emirates.

The new Atkins administration, installed in early 2025, had promised to replace enforcement actions with clear rules. The stated objectives were twofold: protect investors while allowing American innovation to flourish without being hampered by opaque regulation. This interpretation comes as the U.S. Congress is actively working on a comprehensive legal framework for digital assets. The joint statement explicitly describes this as an « important bridge for entrepreneurs and investors » pending permanent legislation. Industry professionals await the latter with impatience, as only it could bring lasting legal stability.

This regulatory crisis of recent years had generated a massive exodus of talent and capital abroad. American companies were forced to choose between exile or risking legal actions that could have cost them billions in fines and legal fees. The situation had reached a point where even legitimate projects were forced to shut down before being able to launch their products on the American market. Security concerns related to digital assets were also at the heart of debates, with growing awareness regarding the accuracy of investor protection mechanisms and the resolution of disputes in case of fraud.

The Facts

Official document number 33-11412 establishes five categories of digital assets with their respective jurisdictional regimes. The first category, « digital commodities, » refers to fungible assets whose value derives from market forces rather than the managerial efforts of an issuer. Bitcoin, Ethereum, and proof-of-stake assets fall into this category, falling under CFTC jurisdiction. This classification is significant because it confirms that BTC and ETH are not securities under U.S. law, a question that had been debated for years.

The second category covers « digital collectibles, » non-fungible assets tied to a specific item, artwork, or particular experience. These assets are subject to securities laws only if sold as part of an investment contract meeting the criteria of the Howey test. The third category comprises « digital tools, » assets consumed in exchange for software or services without any expectation of financial return. « Stablecoins » form the fourth category, referring to assets designed to maintain a stable value relative to a reference asset such as the U.S. dollar.

The fifth category, « digital securities, » covers assets meeting the Howey test and falling exclusively under SEC jurisdiction. The framework specifies that an asset not constituting a security may become a security if the issuer promises to undertake essential managerial efforts from which a buyer could reasonably expect to profit. Conversely, the document also explains how a digital asset may cease to be subject to an investment contract when the issuer’s initial promises are no longer current.

Regarding staking, the interpretation decisively clarifies that receiving a staking token for a non security asset does not constitute a securities transaction. Rewards generated by the staking protocol are not considered dividends and do not require registration with the SEC. Likewise, airdrops distributed without direct financial consideration, that is, without payment or service rendered in exchange, do not satisfy the Howey test’s « investment of money » requirement and therefore do not constitute securities transactions under U.S. regulations. The document specifies, however, that airdrops for which beneficiaries must provide services or other consideration are not covered by this interpretation.

The mechanism of « wrapping » a non security asset is also clarified in the document. When a digital asset is « wrapped » in another token, the interpretation details whether this operation transforms the legal status of the underlying asset. The established criteria allow developers to know in advance whether their token will remain outside the scope of securities laws or enter it depending on circumstances.

Analysis

This framework represents a profound paradigm shift for the American crypto ecosystem. SEC Chairman Paul Atkins stated: « 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. This is what regulatory agencies are supposed to do: draw clear lines in clear terms. » This statement confirms the agency’s change in approach compared to the 2020-2024 period, during which legal actions were the primary regulatory tool.

CFTC Chairman Michael Selig added: « For far too long, American builders, innovators, and entrepreneurs have awaited clear guidance on the status of crypto assets under federal securities and commodity laws. With today’s interpretation, the wait is over. Chairman Atkins and I 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. » This joint statement symbolizes an unprecedented change in tone between the two agencies, traditionally at odds over the classification of digital assets.

For investment funds and their managers, this classification has concrete consequences in terms of reporting and regulatory obligations. An asset classified as « non-security » is not exempt from all regulation: digital commodities remain subject to CFTC oversight. Lawyers specializing in commodities regulation are already advising clients to update their legal documentation in accordance with these new categories. Compliance teams are currently cataloging all tokens held in their portfolios and verifying their classification under the new framework.

The clarification of the staking Receipt Tokens mechanism is particularly significant for DeFi protocols offering delegated staking services. These protocols will no longer need to register these activities with the SEC, which could relaunch innovation in this segment in the United States after years of talent flight abroad. Estimates suggest that billions of dollars in investment could return to American soil over the coming years, driven by this regained regulatory clarity.

Market Reactions

Market reactions were broadly positive on assets in the digital commodities category. Bitcoin and Ethereum, classified at the top of the new framework, saw their volatility decrease in the days following the announcement, according to CoinDesk data. This reduction in volatility is interpreted by analysts as a sign of market maturity, with institutional players feeling more comfortable with a clear regulatory framework. Traders on prediction markets like Polymarket were counting on a high probability of significant price movements in the two months following the interpretation.

On-chain data shows a notable increase in institutional positions on non securities assets after publication. SEC-approved crypto ETFs recorded positive inflows in the following weeks, signaling a return of institutional investor confidence in the regulatory clarity offered by this historic framework. Asset managers who had limited their allocations to the sector due to legal uncertainty are beginning to revise their positions upward. Some analysis firms predict a massive entry of institutional capital in the second half of 2026.

Reactions from industry associations were unanimously positive. The Blockchain Association, the sector’s main lobbying group in Washington, described this interpretation as « the most significant step forward since the beginning of crypto asset regulation. » For its part, the Chamber of Digital Commerce emphasized that this framework finally allows American companies to « plan their future with certainty. » These reactions testify to the importance attributed to this publication by the entire ecosystem.

Outlook

This interpretive framework is not law and can be amended by future administrations. However, it represents a significant political commitment from both agencies to harmonize their approach in a lasting way. Congress continues to work on permanent legislation that would incorporate some elements of this classification into statute. Debates on Capitol Hill are ongoing and industry professionals are closely following the negotiations, knowing that the final content of the legislation could have considerable repercussions on the entire ecosystem.

For token issuers, the question of transition remains open: an asset that was marketed as an investment contract, can it change category when the initial promises are no longer met? The interpretation provides criteria to answer this question, but edge cases will likely require case-by-case legal opinions for several more years. Companies must carefully document their classification decisions and be prepared to justify them to regulators if necessary.

Market players must monitor the next regulatory steps: publication in the Federal Register, implementation guidelines for exchanges, and potential modifications during the next federal budget cycle. The clarity brought by this document does not mean the end of all regulatory oversight, but it redefines the contours of this oversight in a more predictable manner for all sector players. Companies that invest now in compliance will be better positioned to navigate the regulatory environment of 2027 and beyond. The precision of this framework could also serve as a model for other jurisdictions seeking to regulate crypto assets without stifling innovation.

Sources

Telemac
Telemachttp://cryptoinfo.ch

Contenu [hide]

Lire la Suite

Articles