TL;DR
- On March 17, 2026, the SEC and CFTC published a joint 68-page interpretive guidance classifying most crypto assets as digital commodities, not securities.
- Ether (ETH), Solana (SOL), and XRP are among the cryptocurrencies explicitly categorized as «digital commodities».
- The guidance introduces five categories for crypto assets and provides clarity on stablecoins, DeFi activities, and the dynamic legal status of tokens.
- SEC Chair Paul Atkins emphasizes that Congressional legislation is necessary to make the changes permanent.
A Decade-Long Question Gets a (Temporary) Answer
After more than ten years of legal uncertainty, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have taken a significant step towards regulatory clarity in the crypto sector. On March 17, 2026, the two regulatory authorities published a joint 68-page interpretive guidance, according to DL News. The document classifies most crypto assets — including some of the market's heaviest players — as digital commodities rather than securities.
This distinction is far from technical: Securities are subject to the SEC's strict requirements for registration, disclosure, and trading restrictions, while commodities — which primarily fall under the CFTC's jurisdiction — face significantly more lenient regulation, especially in spot markets.
«After more than a decade of uncertainty, this interpretation will provide market participants with a clear understanding of how the SEC treats crypto assets under federal securities law» — SEC Chair Paul Atkins
Five Categories to Clear Up the Jungle
The guidance introduces a five-category taxonomy for crypto assets:
- Digital Commodities
- Digital Securities
- Regulated Payment Stablecoins
- Digital Tools
- Digital Collectibles
A digital commodity is defined in the document as a crypto asset whose value is «intrinsically linked to and derives its value from the programmatic operation of a functional crypto system, as well as supply and demand dynamics» — meaning it does not depend on the managerial efforts of others to generate returns.
DeFi and Stablecoins: Important Clarifications
The guidance also addresses activities that have long been in a legal gray area. Activities such as mining, staking, wrapping, and airdrops are generally not considered securities, according to the document — with the exception of cases where they are linked to an investment contract. This provides DeFi protocols with a clearer framework to operate within.
For stablecoins, the SEC already concluded in April 2025 that so-called «Covered Stablecoins» — meaning stablecoins with 1:1 backing against U.S. dollars and liquid reserve assets — are not securities. This means that issuers and redeemers of these do not need to register transactions with the SEC.
In parallel, the U.S. GENIUS Act of 2025 explicitly excluded «payment stablecoins» from being classified as both securities and commodities, placing their oversight with bank regulators rather than the SEC or CFTC.
A Status That Can Change
An important clarification in the guidance is that the classification is not static. The SEC emphasizes that a token's legal status can «dynamically change» over time — from a security to a non-security as the underlying technology matures and decentralizes. The opposite also applies: an asset that is currently a commodity can become a security if it is marketed with promises of returns based on the efforts of others.
This represents a clear break from the stance previously taken by former SEC Chair Gary Gensler until January 2025, when he consistently argued that most cryptocurrencies — with the exception of Bitcoin — were securities.
Congress Must Secure the Future
Despite the historical scope of the guidance, it is important to nuance the picture. SEC Chair Paul Atkins himself has acknowledged that the current changes are vulnerable without Congressional legislation. An interpretive guidance from a regulatory authority does not carry the same legal weight as enacted laws, and a future shift in political leadership at the SEC could reverse the course.
The industry should therefore rejoice — but with open eyes. The guidance provides a clearer framework to navigate today, but long-term predictability requires Congress to codify these principles into existing law.
