The SEC has issued a formal interpretation explaining how federal securities laws apply to certain crypto assets and crypto transactions, while the CFTC said it is joining that interpretation and will administer the Commodity Exchange Act consistently with it. The two agencies are framing the move as a major step toward clearer crypto market structure in the U.S.
At the center of the release is a sharper line between crypto assets that are not themselves securities and transactions or arrangements that can still create securities-law consequences. The SEC also used the interpretation to address token categories, airdrops, protocol mining, protocol staking, and wrapped non-security crypto assets.
What the agencies announced
The SEC said its new interpretation is meant to clarify how federal securities laws apply to certain crypto assets and certain transactions involving them. The CFTC separately said it joined that interpretation to signal that it and its staff will apply the Commodity Exchange Act consistently with the SEC’s framework.
The agencies are presenting the move as a bridge between years of market uncertainty and a future statutory framework from Congress. SEC Chair Paul Atkins said the interpretation is meant to draw “clear lines in clear terms,” while also reflecting the agency’s view that most crypto assets are not themselves securities. CFTC Chair Michael S. Selig said the joint action is intended to support harmonized rules for the industry.
Just as important, this is an interpretive release rather than a new act of Congress. The SEC’s rule page identifies it as an interpretive final release issued on March 17, 2026, with Federal Register publication still pending.
The key categories the SEC laid out
A major part of the interpretation is a token taxonomy. According to the SEC fact sheet, the agency divided crypto assets into categories based on their characteristics, uses, and functions. It said digital commodities, digital collectibles, and digital tools are not securities, and it also said GENIUS Act payment stablecoins issued by permitted issuers are not securities. By contrast, digital securities, or tokenized securities, remain securities.
That taxonomy matters because it suggests the SEC is trying to move away from treating the entire crypto market as one undifferentiated category. Instead, the agency is signaling that classification should depend on what the asset is, what it does, and how it is offered.
The SEC also said that certain non-security crypto assets may still become subject to an investment contract if they are offered with representations or promises that lead buyers to expect profits from essential managerial efforts. The same fact sheet says a non-security crypto asset can cease being subject to an investment contract once those promises are fulfilled or fail.
What the interpretation says about staking, airdrops, and wrapping
One of the most closely watched parts of the release is how it handles common crypto activities. The SEC said the interpretation clarifies the application of federal securities laws to airdrops, protocol mining, protocol staking, and the wrapping of a non-security crypto asset.
The SEC fact sheet goes further and says protocol mining, protocol staking, and the wrapping of a non-security crypto asset do not involve the offer and sale of a security, as described in the interpretation. It also says certain airdrops do not involve an “investment of money” under the Howey test.
That does not mean every token distribution or staking-related product is automatically outside securities law. What the agencies appear to be doing instead is narrowing the analysis and making it more fact-specific, especially around whether the asset itself is a security and whether the surrounding arrangement creates an investment contract. That is an inference from the interpretation and fact sheet, not a blanket exemption for all crypto activity.
Why this matters now
The practical significance is jurisdictional clarity. The SEC release says market participants should review the interpretation to better understand regulatory jurisdiction between the SEC and CFTC. The CFTC’s companion release reinforces that point by explicitly tying its own approach under the Commodity Exchange Act to the SEC interpretation.
For the industry, the signal is that Washington may be moving toward a more structured split between securities oversight and commodities oversight, rather than relying mainly on case-by-case enforcement. The SEC fact sheet also makes clear that the agency sees this interpretation as part of a broader shift away from the earlier enforcement-heavy approach that many crypto firms criticized.
It also lands at a politically important moment. Both agencies tied the interpretation to ongoing congressional efforts to codify a more comprehensive crypto market structure framework, which means this guidance is likely meant to shape the transition toward future legislation, not replace it.
Why it matters for crypto
- It gives the market a more explicit framework for separating non-security crypto assets from digital securities and investment-contract analysis.
- It strengthens the argument that at least some forms of protocol staking, protocol mining, wrapping, and certain airdrops may fall outside securities-law treatment.
- It brings the SEC and CFTC closer to a harmonized approach, which could reduce some of the jurisdictional confusion that has weighed on U.S. crypto firms.
- It gives Congress a more defined regulatory baseline as lawmakers continue working on market structure legislation.
What to watch next
- Whether the interpretation materially changes how crypto firms structure token launches, staking services, and token wrapping in the U.S.
- Whether courts, market participants, and future enforcement actions apply the SEC’s taxonomy in the way the agencies expect.
- Whether Congress uses this framework as a stepping stone to a formal market structure law dividing SEC and CFTC oversight more clearly.
- When the interpretation is published in the Federal Register and whether additional staff guidance or FAQs follow.