SEC Clarifies Crypto Asset Classification in New FAQs
The United States Securities and Exchange Commission (SEC) has released a set of Frequently Asked Questions (FAQs) on September 25th to provide additional clarity on how its March 2026 Interpretive Release should be applied to different types of crypto assets and transactions.
The FAQs are not SEC rules or regulations but rather staff guidance, which does not have legal force. The SEC itself has neither approved nor rejected the content.
The SEC staff clarified its definitions of 'functional' and 'decentralized,' used to classify crypto assets, stating that these definitions do not determine whether an issuer has fulfilled specific promises to investors.
In regards to staking receipt tokens, the SEC believes they can be classified as a digital tool because they represent ownership of an underlying digital commodity. However, when issued by a protocol-based liquid staking provider, their value may be linked to the automated operation of a functional crypto system and supply-demand dynamics.
The SEC also clarified that broad statements about current or potential features generally do not qualify as investment contracts, while detailed promises of managerial efforts tied to profits may. In addition, an investment contract remains intact if another party assumes the issuer's promises.