SEC Declares Most Crypto Assets Are Not Securities: New Framework Shifts Focus to DeFi

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New SEC–CFTC crypto framework clarifies token status and DeFi exposure

The SEC and CFTC have clarified that most cryptocurrencies aren’t considered securities. They’ve also created a system for categorizing tokens and explained how they can avoid being classified as “investment contracts.” However, they are now focusing enforcement efforts on the platforms and interfaces used in decentralized finance (DeFi).

Summary

  • SEC and CFTC issue joint guidance stating that “most crypto assets are not themselves securities,” and create a formal token taxonomy for the U.S. market.
  • The interpretation explains how non-security tokens can enter and later exit “investment contract” status, and explicitly addresses airdrops, protocol staking, mining and wrapped assets.
  • Lawyers say the move delivers “the most significant regulatory clarity crypto has received in the US in over a decade,” but warn DeFi interfaces and governance remain exposed.

SEC says ‘most crypto assets are not securities’

The U.S. Securities and Exchange Commission (SEC) has finally issued guidance on how existing laws apply to cryptocurrencies. They’ve stated that most crypto assets aren’t considered securities, but they’ve also created a detailed system for classifying different types of tokens in the decentralized finance (DeFi) space. Working with the Commodity Futures Trading Commission (CFTC), the SEC says this aims to provide clarity after years of confusion for those building and investing in crypto.

According to SEC Chair Paul S. Atkins, this new guidance will help people understand how the government views crypto assets as investments. He also stated it confirms that most cryptocurrencies aren’t actually securities themselves. CFTC Chair Michael S. Selig added that American innovators have been waiting for this clarity regarding how crypto assets are regulated under both securities and commodity laws, and that wait is now over.

New token taxonomy and path out of ‘investment contract’ status

This guidance defines different types of digital assets – including commodities, collectibles, tools, stablecoins, and securities – and explains which ones aren’t considered securities. It also clarifies how a digital asset initially classified as non-security can become subject to securities regulations if it’s considered an investment contract. Importantly, it explains how that asset can later be exempt from those regulations when the original creator stops actively managing it.

Law firms like Aurum Law are calling this a significant development, suggesting the SEC has essentially acknowledged that many crypto assets can be considered non-securities, even if they were initially distributed in a way that resembled securities offerings. The SEC’s new guidance specifically addresses practices like airdrops, protocol mining, staking, and wrapping, clarifying that these activities generally won’t automatically classify a token as a security if the token itself isn’t considered one.

DeFi interfaces, governance and global context

The document clarifies the legal status of tokens, but also highlights a growing focus on how people interact with them through decentralized finance (DeFi) platforms. Legal experts predict increased scrutiny of DeFi applications – including websites, community-managed funds (DAOs), and how protocols are run – to ensure they follow securities and commodities laws. This will likely involve stricter requirements for transparency, managing conflicts of interest, and preventing money laundering and terrorist financing.

Experts are calling this new guidance the biggest step forward for crypto regulation in the US in over ten years. However, it doesn’t eliminate regulatory risk – it just shifts the focus. Meanwhile, Europe and the UK are developing their own rules, meaning crypto projects worldwide will still have to navigate a complex web of different regulations, even with the U.S. moving towards treating many crypto assets more like traditional commodities.

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2026-03-23 17:40