The SEC and CFTC have jointly clarified a major question for the crypto industry: “most crypto assets” do not meet the legal definition of securities. The joint guidance, released today, follows the SEC’s January 2026 tokenized securities framework — the first in what the agency said will be a sequence of guidance and proposed rulemakings aimed at bringing regulatory clarity to digital-asset markets.
“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,” said SEC Chairman Paul S. Atkins. He added that the guidance recognizes a long-overlooked point: most crypto assets are not themselves securities, and that investment contracts can end — language Atkins described as an important bridge for entrepreneurs and investors while Congress advances bipartisan market-structure legislation.
CFTC Chairman Michael S. Selig echoed the emphasis on clarity and coordination: “For far too long, American builders, innovators, and entrepreneurs have awaited clear guidance on the status of crypto assets under the federal securities and commodity laws. With today’s interpretation, the wait is over.” He and Atkins framed the move as a step toward harmonized, workable rules of the road that will let the crypto industry “flourish” in the U.S.
Why this matters: classification as a security versus a commodity carries big legal and compliance consequences — from registration and reporting requirements to which regulators enforce the rules. The new joint guidance narrows that uncertainty, signaling a more pro-crypto tilt from the SEC under its current leadership and aligning the two agencies on how many tokens should be treated under federal law.
What’s next: regulators say this is the start, not the finish. Market participants can expect more guidance and proposed rulemaking as agencies and Congress continue to shape a framework for tokenized assets and broader market structure reform. For entrepreneurs and investors, the message is clear: federal agencies are moving toward defined, coordinated rules that should reduce ambiguity and support U.S.-based crypto activity.
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