SEC and CFTC unveil new crypto guidance declaring most digital assets are not securities

The Securities and Exchange Commission (SEC), joined by the Commodity Futures Trading Commission (CFTC), released 68 pages of new guidance clarifying how federal securities laws apply to digital assets, asserting that most cryptocurrencies are not securities. SEC Chair Paul Atkins stated this interpretation provides market participants with clarity after a decade of uncertainty. The guidance details a taxonomy for stablecoins, digital commodities, and "digital tools," all deemed not to be securities under current definitions, and addresses how a non-security crypto asset could potentially become one. It also clarifies the application of securities laws to mining, staking, and airdrops. This approach contrasts with the previous administration's stance under former Chair Gary Gensler, who asserted most cryptocurrencies were securities. The agencies rely on the Howey Test to determine if an asset is an investment contract, noting that digital commodities derive value from the functional crypto system's operation, and specifying conditions under which a non-security asset becomes subject to an investment contract.

(Source：The Block)