SEC, CFTC Joint Guidance Puts Crypto Market on Firmer Regulatory Ground

A new joint guidance from the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) has clarified when crypto tokens cease to be securities, introducing a dynamic framework that could expand institutional participation in the market.

The interpretation sets out how digital assets may fall in and out of securities classification depending on the presence of ongoing managerial promises, addressing a long-standing ambiguity that has shaped market behavior in the U.S.

Mari Tomunen, general counsel at DoubleZero, said the framework introduces a fundamental shift in how legal analysis is applied to digital assets. 'This is the clarity the industry has been waiting for,' she said.

The guidance establishes that a crypto asset is not inherently a security, but may be tied to an 'investment contract' depending on how it is marketed and the expectations set by issuers.