SEC and CFTC Unveil Framework Classifying 16 Cryptocurrencies as Digital Commodities

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) jointly issued guidance in March 2026, classifying 16 crypto tokens as digital commodities under a new five-category framework.

Bitcoin, Ethereum, Solana, XRP, Cardano, and Dogecoin are among the 16 tokens identified as digital commodities that would generally fall under CFTC oversight if the framework is adopted or codified.

The Howey Test remains the primary legal standard for classifying tokens as securities when buyers expect profits from the managerial efforts of others. However, sufficiently decentralized networks fail this test on the third prong, and tokens qualify as commodities when holders use them for intended functional purposes rather than passive speculation.

The classification of a token as a commodity reduces compliance requirements for exchanges and eliminates mandatory SEC registration for tokens meeting the decentralization threshold criteria.