SEC and CFTC End Decade of Crypto Regulatory Uncertainty
The SEC and CFTC issued joint interpretive guidance declaring that most crypto assets are not securities, clearing protocol activities like staking, mining, and airdrops from securities classification after years of enforcement uncertainty.
Key Takeaway
U.S. regulators just cleared staking, mining, and most tokens from securities classification after years of enforcement threats.
SEC Chairman Paul Atkins said the joint guidance with the CFTC acknowledges what the former administration refused to recognize — that most crypto assets are not themselves securities.
The March 17 guidance covers protocol staking, mining, airdrops, and token distribution to user wallets. It also addresses wrapping non-security crypto assets for DeFi protocols and block rewards for network participation. The framework clarifies when investment contracts terminate and distinguishes between digital commodities and digital collectibles, setting out when crypto assets fall outside securities classification entirely.
The guidance follows a pattern of SEC enforcement withdrawals in early 2025. The agency dropped lawsuits against Ripple on March 20, Kraken on March 3, and Coinbase on February 27. It also ended its Uniswap investigation on January 23.
The CFTC previously classified Bitcoin as a commodity in its 2015 Coinflip order. CME and Cboe self-certified Bitcoin futures contracts in 2017. The new joint guidance builds on that precedent by extending commodity treatment to a broader range of crypto assets that don't meet the investment contract test, with all five SEC and CFTC commissioners voting unanimously to approve the framework on March 17.
This article was written based on reporting from U.Today.
