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4h ago

SEC and CFTC Issue Joint Guidance Declaring Most Crypto Assets Are Not Securities

The interpretation introduces a five-part token taxonomy, with the SEC preparing formal rulemaking and safe-harbor proposals within weeks.

SEC says most crypto assets are not securities in new regulatory framework
Can the crypto market rebound as sec clarifies that most cryptocurrencies are non securities?
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Overview

  • Only tokenized traditional instruments labeled as digital securities fall squarely under SEC jurisdiction under the new framework.
  • The guidance clarifies that protocol mining, protocol staking, many airdrops, and wrapping non-security tokens do not constitute securities offerings.
  • The CFTC said it will administer the Commodity Exchange Act consistent with the SEC’s interpretation, signaling coordinated oversight.
  • The interpretation explains how tokens can enter or exit investment‑contract status, including that such contracts can end when issuer promises are fulfilled or fail.
  • The document is interpretive rather than a formal rule, and SEC Chair Paul Atkins said an extensive proposal, expected to exceed 400 pages, will soon be released for public comment.