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SEC and CFTC Unveil Crypto Token Taxonomy, Declare Most Assets Are Not Securities

The joint interpretation is nonbinding guidance that sets up formal rulemaking to follow.

Overview

  • The framework classifies tokens into five categories—digital commodities, digital collectibles, digital tools, stablecoins, and digital securities—with only digital securities falling squarely under securities laws.
  • The interpretation clarifies that protocol mining, protocol staking, many airdrops, and wrapping non‑security assets do not constitute securities offerings.
  • The CFTC endorsed the SEC’s approach and said it will administer the Commodity Exchange Act consistent with this interpretation.
  • The SEC emphasized that investment‑contract status can begin or end over a token’s lifecycle as issuer promises are fulfilled or lapse.
  • Formal rulemaking is expected soon, with the SEC previewing a narrowly tailored innovation safe‑harbor proposal for public comment.