SEC Crypto Taxonomy Redefines US Oversight

Stack of glowing digital coins beside a classical government building with columns and a balance scale featuring a shield icon.

SEC and CFTC Issue Digital Asset Taxonomy – New Interpretive Rule Redefines US Crypto Oversight

Key Takeaways

The US Securities and Exchange Commission has published new guidance establishing a five-part taxonomy for digital assets.
The guidance classifies most cryptocurrencies and tokens as non-securities under an interpretive rule.
The framework was developed jointly with the Commodity Futures Trading Commission.
Industry representatives describe the move as a departure from the regulatory approach under former SEC Chair Gary Gensler.
The CLARITY Act, which would codify broader market structure rules, remains stalled but may see renewed legislative movement.

SEC and CFTC Publish Five-Category Taxonomy for Digital Assets

The United States Securities and Exchange Commission has released new guidance that establishes a formal taxonomy for digital assets. Developed in coordination with the Commodity Futures Trading Commission, the framework divides digital assets into five categories: digital commodities, digital collectibles such as non-fungible tokens, digital tools, stablecoins, and tokenized securities.

According to the SEC, the taxonomy clarifies which digital assets qualify as securities. By distinguishing between categories, the agency sets out how it interprets existing statutory provisions in relation to cryptocurrencies and tokens. The majority of cryptocurrencies and tokens fall outside the definition of securities under this structure.

For market participants, including exchanges, token issuers, and service providers, classification determines which regulatory requirements apply. Assets categorized as securities are subject to securities law obligations, while others may fall under different oversight regimes.

Shift From Legislative Rule to Interpretive Guidance

The new framework has been issued as an interpretive rule rather than a legislative or substantive rule. Alex Thorn, head of firmwide research at investment firm Galaxy, highlighted the procedural distinction under the Administrative Procedure Act.

Under previous SEC policy, determinations about which cryptocurrencies met the legal criteria of investment contracts were treated as legislative rules. Legislative rules must go through a notice-and-comment process and carry the force and effect of law. They bind both the agency and regulated parties.

By contrast, interpretive rules are exempt from notice-and-comment requirements. They do not carry the same legal force and instead explain how the agency understands and intends to apply existing statutes. Courts are not legally bound to enforce interpretive guidance in the same way as legislative rules.

Thorn described the new approach as marking a break from the regulatory posture associated with former SEC Chair Gary Gensler. In his view, the interpretive format provides greater flexibility for both regulators and the industry as digital asset markets evolve.

Implications for the Crypto Industry Over the Next 30 Months

The guidance is positioned as providing clarity for approximately the next 30 months. During that period, market participants can refer to the taxonomy to assess how their products or services are likely to be treated under federal securities laws.

However, Thorn noted that longer-term certainty depends on legislative action. Specifically, he referenced the CLARITY crypto market structure bill, which aims to define regulatory responsibilities and market rules more comprehensively. Without codification into statutory law, the interpretive guidance remains subject to future administrative changes.

For international operators and platforms that serve US users, including those in adjacent sectors such as crypto payments or token-based services, the classification framework may influence compliance strategies and product design. Whether a token is considered a digital commodity, a stablecoin, or a tokenized security affects registration, disclosure, and reporting obligations.

Status of the CLARITY Act and Points of Contention

The CLARITY Act stalled in January 2025 following objections from several crypto companies, including Coinbase. Industry concerns focused on provisions that would prohibit stablecoin yield from passive balances and limit protections for open-source software developers.

Additional criticism centered on decentralized finance. Some companies and industry representatives argued that proposed reporting requirements and know-your-customer controls would significantly affect DeFi protocols.

According to a recent report by Politico, there are indications of a tentative agreement between the White House and lawmakers to move the bill forward. Specific terms have not been publicly detailed. Senator Angela Alsoboorks stated that the emerging deal includes a ban on stablecoin yield derived from passive balances.

If enacted, the legislation would provide statutory backing for elements of the market structure and potentially redefine the regulatory perimeter for stablecoins and DeFi services.

Regulatory Coordination Between SEC and CFTC

The joint nature of the taxonomy underscores ongoing coordination between the SEC and the CFTC. The two agencies have historically shared oversight responsibilities in areas where digital assets may resemble both securities and commodities.

By formally categorizing digital assets into distinct groups, the agencies aim to clarify jurisdictional boundaries. Digital commodities and certain other non-security tokens are generally associated with commodities oversight, while tokenized securities remain within the SEC’s remit.

For users of crypto platforms, including those engaging with token-based services, staking mechanisms, or stablecoins, regulatory classification can affect platform availability, product offerings, and compliance requirements. Clearer delineation between categories may reduce uncertainty in how platforms operate within the United States.

Our Assessment

The SEC’s publication of a five-part digital asset taxonomy, issued as an interpretive rule and developed with the CFTC, formally redefines how the agency classifies cryptocurrencies and tokens under existing law. Most digital assets are categorized as non-securities within this framework. The move alters the procedural basis of prior policy and provides interim regulatory clarity. Long-term legal certainty depends on whether Congress advances and enacts the CLARITY Act, which remains under negotiation following earlier industry objections.