#SECAndCFTCNewGuidelines

The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) released a joint statement on Tuesday explaining how federal securities laws will be applied to crypto assets; this step was recorded as one of the most comprehensive initiatives to date aimed at defining regulatory boundaries in the U.S.

Shift in Federal Crypto Policy: SEC and CFTC Establish Jurisdiction and Token Classifications
The guidance released in Washington, D.C. (1 & 2) outlines how various crypto assets and related activities are subject to existing securities and commodities laws, while also signaling closer coordination between the SEC and CFTC as Congress evaluates more comprehensive market structure legislation.

At the heart of the statement is an official classification categorizing crypto assets as digital commodities, digital collectibles, digital instruments, stablecoins, and digital securities. The regulators say the framework is designed to reduce confusion for issuers, developers, and investors whose operations fall within overlapping jurisdictions.

The agencies also addressed a long-disputed question: when a crypto asset may be tied to an investment contract and when that classification may no longer be valid. The statement notes that "crypto assets that are not securities" may, under certain conditions, fall under securities laws if offered as part of an investment contract, but this classification is not necessarily permanent.

SEC Chair Paul Atkins characterized this step as a course correction following years of regulatory uncertainty. Atkins stated, "After a period of uncertainty spanning more than a decade, this statement will provide market participants with a clear understanding of how the Commission addresses crypto assets under federal securities laws. This is what regulatory agencies need to do: draw clear lines in clear terms."

On Tuesday at the DC Blockchain Summit, Atkins said, "The previous administration 'refused' to acknowledge that most crypto assets were 'not securities.'"

The statement further clarifies how federal securities laws apply to common crypto activities including airdrops, protocol mining, protocol staking, and asset "wrapping." These areas have recently come under scrutiny in enforcement actions, and regulators are now attempting to define consistent treatment rather than rely solely on case-by-case decisions.

The CFTC, which participated in the statement, emphasized its own jurisdiction under the Commodity Exchange Act while noting alignment with the SEC's framework. The agency reaffirmed its supervisory role in derivative and spot market enforcement by noting that certain non-security crypto assets may qualify as commodities.

CFTC Chair Michael Selig said this joint effort aims to end years of uncertainty for industry participants. Selig stated, "American developers, innovators, and entrepreneurs have been waiting for clear guidance for far too long," and added that the statement reflects a commitment to "workable, harmonized regulations" for digital assets.

This announcement came during a period when lawmakers in Washington continue to discuss bipartisan legislation that would formally divide oversight between the SEC and CFTC. Regulators characterized this statement as a bridge providing temporary clarity while legal rules are still being developed.

Market participants are expected to closely examine this guidance, particularly the agencies' approach to evolving token structures and decentralized finance applications. While the statement does not create new law, it provides insight into how both agencies plan to enforce existing laws going forward.