SEC Issues Guidance on Federal Securities Laws for Crypto Assets

The US Securities and Exchange Commission (SEC) has issued an interpretation clarifying when and how federal securities laws govern crypto assets. On March 17, 2026, the SEC released its guidance to bring stability to the crypto markets.

The key takeaway from the release is the SEC's classification of digital tokens into five categories based on their characteristics, uses, and functions: Digital Commodities, Digital Collectibles, Digital Tools, Stablecoins, and Tokenized Securities. The SEC emphasized that tokenization is a change in format, not substance, meaning that devices and instruments with economic characteristics of a security are securities regardless of format or label.

According to the release, Digital Commodities are crypto assets whose value stems from automated mechanics of a blockchain network and market supply-and-demand forces. Digital Collectibles are intended primarily for collection or personal enjoyment, while Digital Tools perform practical functions like membership, ticket, credential, title instrument, or identity badge. Stablecoins may be securities depending on their characteristics.

The SEC also noted that even if a crypto asset is not initially classified as a security, it can become one if sold in a way that encourages people to invest money in a shared venture with the expectation of profits based on the issuer's representations or promises.