SEC and CFTC Ditch Securities Label for Most Cryptocurrencies

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have released joint guidance on the classification of cryptocurrencies, stating that most are not securities.

The document establishes four categories: digital securities, which remain subject to securities laws; digital commodities; digital collectibles; and digital tools. Stablecoins are also excluded from the securities classification.

SEC Chair Paul Atkins emphasized that this new approach contrasts with the stance taken by former SEC Chair Gary Gensler, who maintained that most digital assets were securities. Atkins noted that the agency would no longer take an 'expansive position' on this issue.