After more than a decade of regulatory ambiguity, the United States digital asset industry finally has its "rules of the road."
On March 17, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) issued ajoint-agency interpretive guidance that outlines exactly how federal securities laws apply to crypto assets and network transactions.
The guidance, which has been unanimously approved by SEC Commissioners Atkins, Peirce, and Uyeda alongside CFTC Chairman Selig, directly addresses long-contested activities like protocol staking, mining, and airdrops.
The official "token taxonomy"
The guidance focuses on establishing a coherent, government-recognized token taxonomy. Regulators have categorized digital assets into distinct classes, including digital commodities and digital collectibles.
SEC Chairman Paul S. Atkins explicitly noted that the new guidance "acknowledges what the former administration refused to recognize that most crypto assets are not themselves securities." The document also establishes a framework for how a "non-security crypto asset" can temporarily become subject to an investment contract, and crucially, how that contract can legally come to an end.
For years, American builders and investors have operated under the threat of enforcement actions regarding network participation. The new interpretation clarifies the application of federal securities laws to specific crypto operations:
For instance, it outlines the legal boundaries for securing decentralized networks and earning block rewards when it comes to stalking and mining.
It also clarifies the regulatory treatment of distributing tokens directly to user wallets.
Addresses the legal status of wrapping a non-security crypto asset for use across different decentralized finance (DeFi) protocols.
Dan Burgin
Vladislav Sopov
