The U.S. Securities and Exchange Commission has issued a formal interpretation clarifying that most crypto assets are not securities, a major policy shift following its recent memorandum of understanding with the Commodity Futures Trading Commission. The guidance creates a taxonomy for digital assets and addresses the regulatory status of activities like airdrops and staking, aiming to provide clarity as Congress debates market structure legislation. The announcement coincided with the resignation of the SEC’s enforcement division director, drawing sharp criticism from a former agency official.
The **U.S. Securities and Exchange Commission (SEC)** has moved to clarify how federal securities laws apply to digital assets. In a notice, the commission said this interpretation serves as an “important bridge” while lawmakers consider comprehensive market structure legislation.
The guidance will provide a taxonomy for digital commodities, collectibles, tools, stablecoins, and digital securities. It specifically addresses how a “non-security crypto asset” may be considered an investment contract and clarifies laws on airdrops, mining, staking, and wrapping assets.
SEC Chair Paul Atkins stated, “This is what regulatory agencies are supposed to do: draw clear lines in clear terms.” He added the move acknowledges that most crypto assets are not themselves securities and reflects that investment contracts can end. In prepared remarks, Atkins said only tokenized traditional securities remain subject to securities laws under this framework.
The notice calls on market participants to review the interpretation to understand the regulatory jurisdiction between the SEC and CFTC. This development comes as U.S. Senate lawmakers continue negotiating a digital asset bill expected to grant the CFTC more oversight authority.
The policy shift followed a leadership change at the SEC’s enforcement division. The agency announced that Director Margaret Ryan resigned, with Deputy Director Sam Waldon named acting director.
Former SEC official John Reed Stark criticized the agency’s statement on Ryan’s departure. “The SEC has abandoned its identity,” Stark said, claiming it now functions “less like a law enforcement agency and more like a concierge service for the largest financial players.”
The SEC currently operates with only three commissioners: Republicans Atkins, Mark Uyeda, and Hester Peirce. President Donald Trump had not announced plans to nominate additional members to the five-person panel or the CFTC as of Tuesday.
