SEC and CFTC Officially Classify Bitcoin, Ether, Solana, and 13 Other Cryptos as Digital Commodities, Not Securities
March 18, 2026 — FinTech Weekly
In a landmark move that promises to reshape the regulatory landscape for cryptocurrencies in the United States, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) jointly issued a comprehensive interpretation on March 17 explicitly naming 16 major crypto assets as digital commodities. This marks a decisive clarification sought by the crypto industry for over a decade.
Key Highlights of the 68-Page Joint Interpretive Release
The jointly released 68-page document categorizes a wide range of crypto assets by clearly defining five categories: digital commodities, digital collectibles, digital tools, stablecoins, and digital securities. Crucially, the first three categories—including digital commodities—are clarified not to be securities under federal law.
The agencies directly named the following 16 crypto assets as digital commodities:
- Bitcoin (BTC)
- Ether (ETH)
- Solana (SOL)
- XRP
- Dogecoin (DOGE)
- Cardano (ADA)
- Avalanche (AVAX)
- Chainlink (LINK)
- Polkadot (DOT)
- Hedera (HBAR)
- Litecoin (LTC)
- Bitcoin Cash (BCH)
- Shiba Inu (SHIB)
- Stellar (XLM)
- Tezos (XTZ)
- Aptos (APT)
According to the release, a digital commodity is defined as a crypto asset that derives its value intrinsically from the functional operation of a blockchain or crypto system, driven by supply and demand, rather than from the anticipation of profit based on managerial efforts of others. This delineation effectively excludes these assets from being classified as securities.
Addressing Long-standing Regulatory Ambiguities: Mining, Staking, Airdrops
The interpretive release also resolves several years of regulatory uncertainty surrounding activities within the crypto sector:
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Protocol Mining: Computational work done by validators on proof-of-work blockchains is deemed an administrative or ministerial process, not a securities transaction.
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Protocol Staking: Proof-of-stake networks’ staking activities—including solo staking, self-custodial staking with third parties, custodial setups, and liquid staking—are similarly excluded from securities regulation.
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Airdrops: Distribution of non-security crypto tokens to recipients who provide no compensation (money, goods, or services) are also exempt from securities law because they do not meet the Howey test’s investment-of-money criterion.
Legal and Legislative Context: A Step Toward Codified Clarity
The SEC and CFTC were careful to note that the interpretive release is just a first regulatory step, not an enforceable statute. It complements ongoing efforts in Congress to embed these distinctions into law through the CLARITY Act — a long-anticipated digital asset market structure bill seeking to finalize the securities versus commodity classifications.
The CLARITY Act successfully passed the House of Representatives in July 2025 and was approved by the Senate Agriculture Committee in January 2026. However, it still awaits Senate Banking Committee markup, the next critical legislative step before becoming law.
Coordinated Regulatory Oversight Through Joint Harmonization Initiative
Further cementing their collaboration, on March 11, 2026, the SEC and CFTC signed a Memorandum of Understanding (MOU) to establish a Joint Harmonization Initiative. Co-led by Robert Teply (SEC) and Meghan Tente (CFTC), this initiative aims to standardize policy making, examinations, and enforcement practices concerning digital assets.
According to SEC Chair Paul Atkins, the collaboration addresses decades-long turf battles that previously hindered innovation and encouraged market participants to operate offshore. CFTC Chair Michael Selig described the MOU as the foundational framework to modernize regulatory oversight consistent with contemporary market realities.
Industry Impact and Next Steps
The newly clarified stance by two of the United States’ primary financial regulators is expected to provide much-needed certainty to investors, exchanges, and developers. By defining key crypto assets as commodities, a clearer path opens for their responsible and compliant growth within the U.S. financial system.
However, industry stakeholders await formal passage of the CLARITY Act to enshrine these interpretations into law, which will offer permanent legal clarity. Meanwhile, the Joint Harmonization Initiative signals deeper ongoing cooperation aimed at a robust, harmonized regulatory regime for all digital assets.
FinTech Weekly remains committed to delivering accurate and timely coverage of financial technology developments. For corrections or additional information about this article, please contact [email protected].
Related Stories:
- Top 5 Crypto Wallets to Buy Your First Bitcoin (March 19, 2026)
- Strategy Bought $1.57 Billion in Bitcoin Last Week, Total Holdings Now 761,068 BTC (March 18, 2026)
- The CLARITY Act Has 18 Working Weeks Left, Still Pending Senate Banking Committee Review (March 17, 2026)
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