# U.S. SEC and CFTC Joint Release Major Guidance: Vast Majority of Digital Assets Are Not Securities

On March 17, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) jointly released a comprehensive 68-page digital asset regulatory guidance opinion, clarifying that most cryptocurrencies do not constitute securities.

SEC Chair Paul Atkins stated plainly that the regulatory bodies' responsibility is to establish clear regulatory boundaries with precise terminology, and this initiative aims to end over a decade of regulatory uncertainty.

This position marks a stark departure from the policy approach of the Biden administration. Previously, former SEC Chair Gary Gensler adopted a cautious stance toward the crypto industry, initiating lawsuits against several prominent crypto companies while insisting that most cryptocurrencies fall within the securities category.

The guidance released this time establishes a comprehensive "token taxonomy." This classification framework clearly defines stablecoins, digital commodities, and "digital tools" as asset categories that do not constitute securities.

The document further explains that if the value of a digital commodity is derived from the programmatic operation of functional cryptographic systems and market supply-demand dynamics, it should not be regarded as a security. Similarly, digital collectibles such as trading cards and commemorative items are excluded from the securities category.

Additionally, the document explains how "non-securities crypto assets" may transition into securities, and clarifies the specific legal application scope for scenarios such as mining, protocol staking, and airdrops, providing practical compliance guidance for the complex crypto market environment.

The opinion specifically notes that even if a token itself does not constitute a security, if the issuer induces investment through promises of management efforts such that purchasers reasonably expect profits, such conduct constitutes an investment contract and remains subject to securities law regulation.

In summary, the shift from declaring "most tokens are securities" to "most are not securities," and from an "enforcement-led" to a "rules-first" approach, demonstrates that the SEC and CFTC are delivering on their commitments through concrete action, aiming to end the ambiguous regulatory chaos of the past.

For the crypto industry long shrouded in classification uncertainty, this opinion is undoubtedly a long-overdue but critically important roadmap. It no longer leaves the industry groping in the dark, but instead paves the way for compliant market development through clear regulatory boundaries.

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