The U.S. Securities and Exchange Commission and Commodity Futures Trading Commission have released joint interpretive guidance defining when crypto assets qualify as securities.
Under the new framework, digital securities are those meeting the Howey Test-especially if marketed with promises of profit from issuer efforts. Most other tokens, including payment stablecoins and digital collectibles, are not considered securities unless tied to investment contracts.
The CFTC endorsed the guidance, but emphasized jurisdictional boundaries remain unclear without market structure legislation.
Meanwhile, Arizona filed criminal charges against prediction market platform Kalshi, accusing it of illegal gambling through election and sports wagers. Nevada also temporarily banned Kalshi’s operations pending a hearing.
Critics argue federal regulators have been too permissive, enabling platforms to operate as unlicensed sportsbooks. Senators remain divided on ethics, consumer protections, and stablecoin yield rules.
No major hearings are scheduled this week, but momentum for legislative clarity is growing.