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SEC and CFTC Say Most Crypto Tokens Are Not Securities in Joint Guidance

The move signals a pivot from enforcement toward a clearer interim framework pending congressional action.

Overview

  • SEC Chair Paul Atkins outlined joint interpretive guidance stating most cryptocurrencies are not securities, marking a shift away from an enforcement‑first approach.
  • The agencies named four non‑securities categories—digital commodities, digital tools, digital collectibles including NFTs, and stablecoins—while tokenized traditional securities remain under SEC oversight.
  • A new memorandum of understanding formalizes SECCFTC coordination, with the CFTC positioned to oversee digital commodity markets.
  • Atkins said the SEC plans to seek public comment on crypto safe harbors and a fit‑for‑purpose startup exemption, with a sandbox‑style path for limited experimentation.
  • The interpretation is nonbinding and framed as a bridge until Congress acts, with the CLARITY Act still awaiting a Senate Banking Committee markup and courts potentially diverging from the agencies’ view.