SEC and CFTC Clarify Crypto Rules, Mining Not Securities

• SEC and CFTC introduced a framework classifying tokens into securities, commodities, and digital tools.

• Regulators said mining, staking, and airdrops do not qualify as securities under federal law.

• The guidance marks a shift toward clearer rules, with formal proposals expected in coming weeks.

U.S. regulators released new crypto guidance Tuesday in Washington, D.C., as the SEC and CFTC outlined how federal laws apply to digital assets. SEC Chair Paul Atkins and CFTC Chair Mike Selig presented the framework during the DC Blockchain Summit. The document aims to reduce uncertainty by defining asset classes and clarifying treatment of mining, staking, and airdrops.

Regulators Outline Token Classification Framework

The SEC issued a 68-page interpretation alongside the CFTC, detailing how crypto assets fit within federal laws. According to the agencies, most cryptocurrencies do not qualify as securities. The guidance introduces a token taxonomy covering stablecoins, digital commodities, and digital tools.

Notably, regulators said these categories fall outside securities classification. Additionally, the framework identifies digital securities as the only category subject to securities laws. These represent traditional securities issued through blockchain technology.

Atkins said the interpretation aims to provide clarity after years of uncertainty. He emphasized that regulators must define rules in clear terms.

Mining And Staking Fall Outside Securities Scope

The guidance directly addresses crypto network activities, including mining and staking. Regulators stated that protocol mining rewards do not constitute securities.

Similarly, protocol staking and airdrops fall outside securities regulations under the new interpretation. The agencies clarified that these activities do not involve investment contracts.

However, the SEC explained how a non-security asset could become a security. This occurs when issuers offer tokens with promises of profit tied to managerial efforts.

The explanation relies on the Howey Test, a legal standard used to define investment contracts. The framework applies this test to crypto transactions.

Policy Shift And Next Steps

The new interpretation marks a shift from the previous SEC approach under Gary Gensler. Earlier policies treated many crypto assets as securities and led to enforcement actions.

Atkins stated that the agency will begin formal rulemaking soon. He said proposals could emerge within weeks and include additional crypto measures.

Meanwhile, Selig confirmed that the CFTC supports the same classification system. He described the effort as part of broader regulatory coordination.

The agencies also defined digital collectibles and commodities based on functionality and market dynamics. These definitions form part of ongoing efforts to standardize crypto oversight.