The U.S. Securities and Exchange Commission has issued long-awaited guidance clarifying which cryptocurrencies qualify as securities under federal law.
The agency’s new interpretation outlines how a digital asset initially deemed a non-security could later be classified as an investment contract-triggering full SEC oversight-if its economic realities evolve to meet the Howey Test criteria.
This move provides much-needed regulatory clarity for crypto firms, investors, and developers navigating the blurred line between utility tokens and securities.