SEC and CFTC Reshape Crypto Regulation: Most Digital Assets Declared Non-Securities

SEC and CFTC Release New Crypto Guidance, Declaring Most Digital Assets Are Not Securities

By Sarah Wynn | Policy | March 17, 2026, 4:24PM EDT

In a significant regulatory update, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) jointly unveiled a comprehensive set of guidelines clarifying how federal securities laws apply to cryptocurrencies and related digital assets. The 68-page guidance, issued Tuesday, marks a key shift in the government’s approach to digital asset regulation by affirming that the majority of cryptocurrencies are not classified as securities.

Speaking at the DC Blockchain Summit in Washington D.C., SEC Chair Paul Atkins emphasized the agency’s renewed focus and clarified its position, stating, “We’re not the ‘securities and everything commission’ anymore.” The comments reflect a departure from previous, more stringent regulatory stances under the Biden administration, particularly contrasting with former Chair Gary Gensler’s tenure, during which the SEC pursued numerous enforcement cases against major crypto entities and maintained that many cryptocurrencies qualify as securities.

Defining Token Taxonomy and Digital Asset Classifications

The joint guidance introduces a detailed "token taxonomy" which delineates various types of digital assets, including stablecoins, digital commodities, and “digital tools.” According to the document, stablecoins and digital commodities generally do not meet the legal definition of securities.

The new taxonomy also clarifies that digital assets deriving value from the functional operation of a crypto system—such as digital commodities—are exempt from being classified as securities. The agencies noted that this exemption applies to digital collectibles tied to items like trading cards or current events, which similarly do not constitute securities.

This clarity is expected to provide market participants with a long-awaited framework after over a decade of ambiguities regarding regulatory jurisdiction within the crypto sector. “After more than a decade of uncertainty, this interpretation will provide market participants with a clear understanding of how the Commission treats crypto assets under federal securities laws,” Chair Atkins said.

When Non-Security Crypto Assets Become Securities

The SEC guidance further explains the conditions under which a digital asset that is initially not a security could later be deemed one. Specifically, a “non-security crypto asset” could be classified as a security if its issuer induces investments with representations or promises of managerial efforts that investors expect to generate profits. This interpretation effectively applies the longstanding Howey Test—derived from a 1946 U.S. Supreme Court ruling—to modern digital token offerings.

The guidance also addresses how federal securities laws relate to crypto mining, protocol staking, and the distribution of tokens through airdrops, clarifying the regulatory landscape for these activities.

A Move Toward Regulatory Clarity

This latest regulatory approach signals a strategic pivot by the SEC and CFTC toward clearer and more functional crypto policies aimed at fostering innovation while protecting investors. Chair Atkins assured that the SEC intends to “draw clear lines in clear terms,” helping reduce uncertainty that has long plagued the industry.

The joint CFTC-SEC document highlights their collaborative effort to delineate regulatory responsibilities and make distinctions based on the specific features and usage of digital assets, balancing oversight with market growth.

Industry and Market Impact

The announcement was met with cautious optimism across the crypto industry, as clarified regulatory rules may encourage more mainstream adoption and encourage responsible innovation. Market responses were mixed but reflected an underlying acknowledgment that clearer definitions are essential for the sector’s maturation.

This update arrives amid ongoing market volatility, where major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) have recently faced downward price pressure following global economic signals and Federal Reserve policy considerations.

Disclaimer: This article is for informational purposes only and does not constitute legal, financial, or investment advice.

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