US SEC and CFTC Release New Cryptocurrency Guidance, Clarifying That Most Digital Assets Are Not Securities

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ChainCatcher reports that, according to The Block, the U.S. SEC and CFTC jointly issued a 68-page new guideline, clarifying that most cryptocurrencies are not securities.

SEC Chairman Paul Atkins stated at the Washington Blockchain Summit that this move will provide market participants with clear guidance on how federal securities laws apply to digital assets. The guideline details the classification of stablecoins, digital commodities, and “digital tools,” all of which are deemed non-securities, and explains how “non-security digital assets” can transform into securities, as well as how federal securities laws apply to mining, protocol staking, and airdrops.

Digital commodities are defined as assets “intrinsically linked to the functional operation of a cryptosystem and its supply-demand dynamics, from which value is derived.” Digital collectibles are also not considered securities. Atkins said, “We are no longer the ‘Securities and Exchange Commission,’” contrasting with former SEC Chair Gary Gensler’s stance of viewing most cryptocurrencies as securities. CFTC Chair Michael Selig also attended the summit.

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