SEC and CFTC Deliver Landmark Clarity on Crypto Regulation 

In a significant development announced today, the SEC and CFTC have jointly released a comprehensive interpretation that sets out a clearer token taxonomy for digital assets. The framework categorises crypto into five groups: digital commodities, digital collectibles, digital tools, stablecoins under the GENIUS Act, and digital securities. Most notably, it classifies a range of major cryptocurrencies as digital commodities, or non-securities, regulated primarily by the CFTC.

The list explicitly includes Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), Cardano (ADA), Avalanche (AVAX), Chainlink (LINK), Dogecoin (DOGE), Aptos (APT), Bitcoin Cash (BCH), Hedera Hashgraph (HBAR), Litecoin (LTC), Polkadot (DOT), Shiba Inu (SHIB), Stellar (XLM), and Tezos (XTZ).

These assets are recognised as deriving value from functional blockchain networks and market dynamics, rather than centralised managerial efforts under the Howey Test. Their confirmation as commodities removes a long-standing area of uncertainty, places spot markets under CFTC oversight, and eases the compliance burden associated with securities registration.

This follows directly from the agencies’ March 11 Memorandum of Understanding (MOU), a public agreement that formally separates responsibilities, coordinates oversight, and commits both regulators to harmonised rules for dually regulated platforms, crypto products, and emerging technologies. In effect, the MOU provides the clearest regulatory framework Washington agencies can currently offer, with defined jurisdictional boundaries, data-sharing arrangements, and a pathway for joint rulemaking without the need to wait for full legislation.

The shift is a sharp departure from the Gary Gensler era, when the SEC was widely criticised for offering little clarity, relying heavily on enforcement, and creating uncertainty across the sector. Under new leadership, the regulatory approach appears to be moving towards fair notice, support for lawful innovation, and more targeted oversight aimed at strengthening US competitiveness.

For the crypto industry, and for institutions that have remained on the sidelines, this combined move should improve confidence materially. Developers, exchanges, and investors now have a clearer basis on which to plan, which could support broader adoption across payments, DeFi, tokenisation, and related areas. With greater regulatory certainty, the path is becoming clearer for mainstream capital to engage with blockchain technology and the efficiencies it promises.