With its new classification statement on March 17, the US Securities and Exchange Commission (SEC) evaluated major crypto assets such as Ethereum, Solana, Cardano, Dogecoin, Avalanche, XRP and Chainlink as “digital commodities”. This decision marked a significant turning point in the crypto space after years of uncertainty. It was also emphasized that some token sales will not be treated as securities if certain conditions are met.
Joint Regulatory Step from SEC and CFTC
With the statement, a new coordination framework was created between the SEC and the US Commodity Futures Trading Commission (CFTC). This framework aims to ensure clarity in product definitions, to carry out joint control and implementation processes in a harmonious manner, and to eliminate unnecessary conflicts in regulations for dual-licensed platforms. The “regulation by sanctions” approach, which has been implemented for a long time, has now been replaced by a system in which asset type, legal contracts and regulation areas are clearly separated.
Net Classifications and End of Investment Agreement
The SEC statement made it clear that digital commodities, digital collectibles, digital instrument tokens and certain payment stablecoins do not fall into the category of securities. On the other hand, securitized assets such as tokenized shares continue to remain within the scope of regulation. Mining, staking, and some airdrop transactions, as well as stablecoins such as USDC, are categorized as not being considered securities transactions if they meet the conditions.
The SEC’s new framework also states that a token sale agreement can terminate upon the fulfillment of the provider’s key promises. That is, even if a token was initially sold with an investment contract, if the underlying expectations of the provider disappear, the token in question may cease to be a security.
The document published by the SEC stated that “a structure has been created where market participants can predict which assets will be subject to which rules, which may lead to a reduction in compliance costs and price distortions resulting from market uncertainty.”
Practical Changes for Users and Platforms
The updated guidance clarified the legal nature of core activities, especially for crypto users and platforms. Protocol mining, certain types of staking, and some airdrop transactions are not counted as sales of securities under the new interpretation. Assets such as tokenized stocks and bonds will continue to remain within the scope of regulation. Tokens whose provider commitments expire over time may also cease to be securities.
The memorandum of understanding published by the SEC and CFTC aims to increase coordination in definitions and classifications and to introduce clearer rules in platform, wallet and secondary market transactions.
It was also stated that the SEC has already held many feedback and industry meetings, and that crypto laws are expected to be clarified by Congress in the long term. With this comment, it stands out that the USA has adopted an approach closer to the European Union’s MiCA framework and the UK’s gradual regulatory plans.
With the new statement, the question that investors, developers and stock exchanges have been seeking answers to for a long time is “Which asset is considered a security and when and when does this relationship end?” More clear answers were given to the questions.
