SEC Publishes First-Ever Crypto Classification, Finding Most Digital Assets Are Not Securities

The U.S. Securities and Exchange Commission (SEC) has for the first time published a clear classification of crypto assets, finding that the majority of digital assets do not qualify as securities. This marks a significant departure from the position of former SEC Chair Gary Gensler, who had argued that nearly all cryptocurrencies, with the exception of Bitcoin, would fall under securities law (as reported by Trending Topics).

This matter is significant because the SEC under Gensler waged a veritable crusade against crypto companies, including the pivotal question of whether they had illegally brought tokens to market that would have first required SEC approval.

The SEC’s New Token Taxonomy

The interpretive guidance published by the SEC on March 17, 2026, developed jointly with the commodities regulator CFTC, defines four categories of digital tokens. The aim is to provide market participants with reliable orientation after years of regulatory uncertainty. The guidance does not yet have the status of a formal rule, but is intended to serve as the basis for future regulatory practice.

According to the new classification, the following categories fall under the supervision of the respective authorities:

• Digital Securities: Traditional securities in tokenized form, which continue to be subject to SEC oversight
• Digital Commodities: Crypto assets classified as commodities, falling within the jurisdiction of the CFTC
• Digital Collectibles: Digital objects not classified as securities
• Digital Instruments and Stablecoins: Also situated outside securities law

In addition, the guidance clarifies that airdrops, protocol mining, protocol staking, and the so-called wrapping of non-security crypto assets do not fall under securities law.

Policy Shift Compared to the Gensler Era

The contrast with the tenure of Gary Gensler, who led the SEC until the end of 2024 under President Joe Biden, is considerable. Gensler had refused to develop a specific regulatory policy for the crypto sector and maintained the view that the vast majority of cryptocurrencies, with the exception of Bitcoin, should be classified as securities. This stance led to numerous enforcement actions against crypto companies and to persistent legal uncertainty in the industry.

“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 law,” said SEC Chair Paul Atkins.

Atkins, appointed by President Donald Trump with a pro-crypto mandate, emphasized that the agency is returning to its core mission. Overseeing markets that do not involve securities is not part of the SEC’s statutory mandate.

Cooperation Between SEC and CFTC

The joint publication of the guidance with the CFTC is part of a closer cooperation between the two agencies, which had shortly before signed a formal Memorandum of Understanding. The goal is a harmonized regulation of the crypto market, with responsibilities clearly divided between the two regulatory authorities. CFTC Chair Brian Selig explicitly endorsed the new taxonomy.

“The signal is now clear: it is time to build in the United States.” (CFTC Chair Brian Selig)

Outlook: Formal Rulemaking Announced

The current interpretive guidance is only the beginning of a more comprehensive regulatory process. Atkins announced that the SEC would initiate a formal rulemaking process within the coming one to two weeks. This is expected to include a so-called “innovation exemption” for crypto companies and will likely span more than 400 pages.

Atkins emphasized, however, that only the U.S. Congress can create a lasting foundation for the new crypto regulatory policy through appropriate legislation. Corresponding market structure bills are currently being negotiated in the Senate and are expected to grant the CFTC an expanded supervisory role over cryptocurrencies.