The U.S. Securities and Exchange Commission said it will publish an interpretation clarifying how “non-security crypto assets” are treated under federal securities laws, one of its first actions after signing a memorandum of understanding with the Commodity Futures Trading Commission (CFTC).
The SEC framed the guidance as a temporary but important “bridge” while Congress works on market-structure legislation that could codify oversight of digital assets. The commission said the interpretation will offer a coherent taxonomy for categories such as digital commodities, collectibles, protocol tools, stablecoins and digital securities, and will explain when a non-security crypto asset could nevertheless meet the definition of an investment contract. It will also clarify how federal securities rules apply to common token activities including airdrops, protocol mining, protocol staking and token wrapping.
SEC Chair Paul Atkins emphasized the agency’s aim to “draw clear lines in clear terms,” saying the interpretation recognizes that most crypto assets are not securities and that investment-contract relationships can end. In prepared remarks he added that, under the interpretation, the only crypto asset class that would remain squarely under securities law is traditional securities that are merely tokenized. The commission urged market participants to review the interpretation to better understand the dividing lines between SEC and CFTC jurisdiction over cryptocurrencies.
The timing of the notice coincides with Senate work on a digital-asset market-structure bill expected to expand the CFTC’s authority over many types of cryptocurrencies, making the interagency coordination and the SEC’s taxonomy especially relevant to market participants and lawmakers.
Enforcement leadership change and criticism
Shortly before the notice, the SEC announced Enforcement Division Director Margaret Ryan had resigned and Principal Deputy Director Sam Waldon would serve as acting enforcement director. The leadership change drew criticism from some former SEC officials. John Reed Stark, who previously led the SEC’s Office of Internet Enforcement, questioned the agency’s stated enforcement priorities and warned that the commission has shifted in ways that concern some observers.
The SEC currently has three commissioners—Paul Atkins, Mark Uyeda and Hester Peirce—all Republicans—leaving the intended five-member, bipartisan panel short of members. The White House has not announced nominations to fill vacancies at either the SEC or the CFTC, which also has only one Senate-confirmed commissioner. Observers say the new SEC interpretation could provide useful near-term clarity, but broader regulatory authority and enforcement direction will continue to hinge on staffing decisions and pending legislation.