SEC and CFTC Classify Bitcoin, Ether, Solana and 13 Other Crypto Assets as Digital Commodities
The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission issued a joint interpretive release on March 17 formally classifying 16 major crypto assets as digital commodities rather than securities, marking one of the most significant regulatory developments in the U.S. crypto market to date.
The 68-page joint document explicitly names the following crypto assets as digital commodities: Bitcoin, Ether, Solana, XRP, Dogecoin, Cardano, Avalanche, Chainlink, Polkadot, Hedera, Litecoin, Bitcoin Cash, Shiba Inu, Stellar, Tezos, and Aptos.
New Crypto Asset Classification Framework
The joint release introduces a five-category framework for digital assets:
- Digital commodities
- Digital collectibles
- Digital tools
- Stablecoins
- Digital securities
According to the agencies, digital commodities, digital collectibles, and digital tools are not securities by default, meaning they fall outside traditional securities law unless structured differently.
A digital commodity is defined as a crypto asset whose value is derived primarily from the operation of a functional blockchain system and market supply and demand, rather than from the managerial efforts of a central organization.
Staking, Mining, and Airdrops Clarified
The release also addresses three major areas that previously faced regulatory uncertainty:
- Mining: Classified as an administrative or technical activity, not a securities transaction.
- Staking: Solo staking, self-custodial staking with third parties, custodial staking, and liquid staking are all treated similarly and are not automatically considered securities transactions.
- Airdrops: If recipients do not provide money, goods, or services in exchange, the airdrop does not meet the “investment of money” requirement under securities law and is therefore not considered a securities offering.
This clarification resolves several long-standing regulatory questions that had affected exchanges, developers, and investors.
Interpretation, Not Law
However, the agencies emphasized that this document is an interpretive release, not a statute. This means the classification guidance does not carry the full force of law and could be changed in the future.
For the classification framework to become permanent, Congress would need to pass the CLARITY Act, which would formally codify the distinction between digital commodities and digital securities into federal law.
The CLARITY Act has already passed the House of Representatives and cleared the Senate Agriculture Committee, but still requires approval from the Senate Banking Committee before it can become law.
SEC and CFTC Coordination
The interpretive release follows a Memorandum of Understanding (MOU) signed by the two agencies on March 11, establishing a Joint Harmonization Initiative to coordinate crypto regulation, oversight, and enforcement.
SEC Chair Paul Atkins said regulatory conflicts between agencies had previously slowed innovation and pushed crypto businesses overseas, while CFTC Chair Michael Selig stated that the agreement aims to modernize oversight and create a more coordinated regulatory framework.
