SEC Clarifies Application of Federal Securities Laws to Crypto Assets

On March 17, 2026, the Securities and Exchange Commission (SEC) issued a formal interpretation providing clarity on the application of federal securities laws to crypto assets and related transactions. This move signifies a substantial step towards defining the regulatory landscape for crypto assets, complementing ongoing legislative efforts in Congress to establish a comprehensive market structure framework. The Commodity Futures Trading Commission (CFTC) has aligned with the SEC, ensuring consistent administration of the Commodity Exchange Act in accordance with the SEC’s interpretation. 

SEC Chairman Paul S. Atkins emphasized the importance of this interpretation, stating it provides market participants with a clear understanding of how the SEC treats crypto assets under federal securities laws, ending over a decade of uncertainty. Chairman Atkins also noted the interpretation acknowledges that most crypto assets are not securities by themselves and recognizes the finite nature of investment contracts. He views this initiative as a crucial bridge for entrepreneurs and investors while Congress advances bipartisan market structure legislation. 

CFTC Chairman Michael S. Selig echoed this sentiment, highlighting the long-awaited guidance on the status of crypto assets under federal securities and commodity laws. He affirmed a commitment to fostering a regulatory environment that enables the crypto industry to thrive in the United States through clear and rational regulations. Chairman Selig emphasized the joint agency action reflects a shared dedication to developing harmonized regulations for the evolving financial landscape. 

The Commission’s interpretation encompasses several key areas: 

• Token Taxonomy: Establishes a coherent taxonomy for digital commodities, digital collectibles, digital tools, stablecoins, and digital securities. 

• Non-Security Crypto Assets: Addresses the circumstances under which a crypto asset that is not inherently a security may become subject to an investment contract, and conversely, how it may cease to be subject to such a contract. 

• Application to Specific Activities: Clarifies the application of federal securities laws to airdrops, protocol mining, protocol staking, and the wrapping of non-security crypto assets. 

The SEC encourages all market participants, including innovators, issuers, and investors, to thoroughly review this interpretation to gain a better understanding of the regulatory jurisdiction between the SEC and CFTC. The interpretation will be accessible on SEC.gov and published in the Federal Register. 

 Contact us today to discuss how we can help you to be up to date with all the regulatory changes and keep you on the compliant path, or click here to download our analysis of the interpretation.