SEC and CFTC publish a new crypto framework

The new interpretive guidance from the SEC, joined by the CFTC, says the agencies will evaluate crypto assets through a clearer classification framework rather than treating the entire sector as a single category. The release sets out five groups: digital commodities, digital collectibles, digital tools, stablecoins, and digital securities. Under the agencies’ view, federal securities laws apply only to digital securities.

SEC Chair Paul Atkins said the interpretation is meant to provide market participants with a clearer understanding of how the agency applies federal securities laws to crypto assets. The guidance also states that the CFTC will administer the Commodity Exchange Act consistently with that interpretation.

Most crypto assets are not being treated as securities

One of the biggest takeaways is that the SEC’s current position is that most crypto assets are not themselves securities. That is a major shift from the more expansive view that had defined much of the prior regulatory approach.

Instead, the agencies are focusing on the specific characteristics, uses, and economic reality of a token and the way it is offered or promoted. The guidance makes clear that labels alone do not decide the issue. What matters is whether the asset or transaction fits within existing legal standards, especially the Howey test.

A non-security token can still become part of an investment contract

The guidance does not say that a token is permanently outside securities law just because it starts as a non-security crypto asset.

The SEC explains that a non-security crypto asset can still become subject to securities laws if it is offered or promoted in a way that leads buyers to expect profit from the efforts of others in a common enterprise. The release also says a token may later cease to be associated with an investment contract if those representations or managerial promises no longer reasonably remain tied to it.

That distinction is important because it shifts more attention to how tokens are marketed, distributed, and presented to buyers, not just to the token’s technical design.

The guidance also covers key crypto activities

The interpretation goes beyond token labels and also addresses how the SEC views common crypto activities.

According to the release, the guidance specifically clarifies the application of federal securities laws to airdrops, protocol mining, protocol staking, and the wrapping of a non-security crypto asset. That gives the market a broader framework for assessing not just tokens themselves, but also the surrounding activities and structures built around them.

Why this matters for the market

This is a major development because the U.S. crypto industry has spent years asking for clearer lines between securities, commodities, and other digital asset categories.

The new interpretation does not replace the Howey test, and it is not the final word on crypto regulation. But it does show how the SEC and CFTC currently plan to approach enforcement, oversight, and classification. That makes it highly relevant for token issuers, exchanges, staking projects, and investors trying to understand regulatory risk.

The SEC is also soliciting public comment on the interpretation, meaning the framework could still be refined or expanded. That suggests this is an important step toward a more structured U.S. crypto regime, but not the last one.