TLDR
- The SEC released its first-ever guidance defining different types of crypto assets and how they’ll be regulated
- Only one category — “digital securities” (tokenized traditional securities) — falls under SEC oversight
- The guidance was issued jointly with the CFTC as the two agencies move toward coordinated crypto regulation
- SEC Chair Paul Atkins says most crypto assets are not securities, reversing the stance of the previous administration
- A formal rulemaking process with 400+ pages of proposals, including an “innovation exemption,” is expected within weeks
The U.S. Securities and Exchange Commission has published its first formal guidance defining what types of crypto assets count as securities. The move marks a turning point in how the agency will regulate digital assets going forward.
TODAY 🚨: The Commission issued an interpretation that clarifies the application of federal securities laws to crypto assets.
This is a major step to provide greater clarity regarding the Commission’s treatment of crypto assets.
Read the release here: https://t.co/DDykVLHZQI pic.twitter.com/zbLFS2JH6g
— U.S. Securities and Exchange Commission (@SECGov) March 17, 2026
The guidance was released on Tuesday, March 17, alongside the Commodity Futures Trading Commission. It came just days after the two agencies signed a memorandum of understanding to work as regulatory partners.
SEC Chair Paul Atkins unveiled the guidance at the Digital Chamber’s DC Blockchain Summit in Washington. Atkins was appointed by President Donald Trump to bring a more crypto-friendly approach to the agency.
The guidance introduces a “token taxonomy” that groups crypto assets into five categories: digital commodities, digital collectibles, digital tools, stablecoins, and digital securities.
Of those five categories, only digital securities — defined as traditional securities that have been tokenized — remain under SEC jurisdiction. All other categories fall outside the agency’s reach under this new framework.
“Most crypto assets are not themselves securities,” Atkins said in his statement, directly contradicting the position held by his predecessor, Gary Gensler.
Under Gensler, the SEC had declined to issue tailored crypto guidance, which left companies and developers without clear rules for years. The new framework is meant to close that gap.
How the SEC Now Defines a Crypto Security
According to the guidance, a digital asset becomes a security when it is offered as an investment in a common enterprise with promises of profits based on management’s efforts.
That security status does not last forever. The SEC says an investment contract ends when the issuer either fulfills or fails to meet its stated promises, at which point the asset would no longer be regulated as a security.
The guidance also clarifies that SEC oversight does not extend to airdrops, protocol staking, or protocol mining.
What Comes Next
Atkins told reporters the agency plans to launch a formal rulemaking process “in a week or two.” That proposal is expected to run more than 400 pages.
The formal rule will include plans for an “innovation exemption” for crypto firms and will address additional aspects of crypto regulation. Atkins said legislation from Congress would be the only way to make these policy shifts permanent.
CFTC Chair Brian Selig also backed the new taxonomy, saying his agency was signing on to the same classification framework as part of a push toward “harmonization” between the two regulators.
On Monday, the SEC’s enforcement division director, Margaret Ryan, resigned. Sam Waldon was named as acting enforcement director. Former SEC official John Reed Stark criticized the departure, saying the agency had “abandoned its identity.”
As of Tuesday, only three of the five commissioner seats at the SEC were filled — all Republicans. President Trump had not announced plans to nominate additional commissioners to the SEC or CFTC.
