In a joint effort with the Commodity Futures Trading Commission (CFTC), the US Securities and Exchange Commission (SEC) announced it will interpret how non-security crypto assets fall under federal laws. This move aims to bridge the gap as Congress considers market structure legislation for digital assets.
SEC Chair Paul Atkins emphasized that most crypto assets are not securities, acknowledging the end of investment contracts. The SEC's interpretation will provide a coherent token taxonomy and clarify laws on airdrops, mining, staking, and wrapping of non-security assets. Only traditional securities that are tokenized remain subject to securities laws. The SEC urges market participants to review the interpretation for better regulatory understanding.
This announcement comes as the Senate negotiates a digital asset market structure bill, expected to give the CFTC more oversight over cryptocurrencies.