SEC and CFTC Release New Regulatory Guidance, Most Crypto Assets Are Not Securities

Mars Finance News: The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) jointly released a 68-page new regulatory guideline on Tuesday, clearly stating that most digital assets are not securities, aiming to provide a clearer regulatory framework for the market. SEC Chair Paul Atkins said at the Washington DC Blockchain Summit, “We are no longer the ‘Securities and Everything Commission.’” He pointed out that this explanatory guideline will help market participants better understand how federal securities laws apply to crypto assets. The new guideline proposes a classification system for digital assets, including categories such as stablecoins, digital commodities, and “digital tools,” and notes that these assets are generally not considered securities. At the same time, the document explains under what circumstances non-security digital assets may be deemed securities, and discusses the application of securities laws to activities like mining, protocol staking, and airdrops. This regulatory stance contrasts sharply with previous attitudes of U.S. regulators. During the Biden administration, former SEC Chair Gary Gensler repeatedly stated that most crypto assets are securities and took enforcement actions against several crypto companies.