SEC and CFTC Unveil Framework Classifying 16 Crypto Tokens as Commodities
The SEC and CFTC issued joint guidance in March 2026 classifying 16 crypto tokens as digital commodities under a new five-category framework.
The list includes Bitcoin, Ethereum, Solana, XRP, Cardano, and Dogecoin, among others, and represents the most significant U.S. crypto regulatory development since the SEC's 2019 framework.
The Howey Test remains the primary legal standard for identifying investment contracts, but the guidance clarifies that sufficiently decentralized networks fail this test on the third prong.
Tokens qualify as commodities when holders use them for intended functional purposes rather than passive speculation, and real-world utility applications factor into the determination of commodity versus security classification status.