# BREAKING! SEC and CFTC Joint Release New Crypto Asset Classification Rules, First Time Clearly Defining Five Categories, Delineating Securities vs. Non-Securities Boundaries!

Today, the U.S. SEC and CFTC jointly released a historic interpretive guidance document (RIN 3235-AN56 / 3038-AF67), establishing for the first time an official classification framework for crypto assets systematically. This means the years-long "regulation as enforcement" ambiguous era is coming to an end, and a clear path to compliance has finally emerged.

## 1. Five Categories, Different Legal Treatments

| Category | Core Test | Regulatory Authority | Typical Examples |
|----------|-----------|-------------------|------------------|
| Digital Commodities | Value derives from blockchain network itself, independent of team effort | CFTC | BTC, ETH, SOL, XRP, ADA, DOGE, LINK, AVAX and 16 other assets (list first clarified) |
| Digital Collectibles | Collectible properties, value derives from market supply/demand and culture | Non-Securities | NFTs (CryptoPunks), meme coins (WIF), fan tokens, game skins |
| Digital Utilities | Utility functions such as membership, tickets, domain names | Non-Securities | ENS domains, CoinDesk NFT conference tickets |
| Stablecoins | Payment stablecoins compliant with the "GENIUS Act" directly excluded from securities definition | Case-by-case | USDC and other licensed stablecoins compliant, others pending |
| Digital Securities | Traditional financial assets on-chain, remain securities in essence | SEC | Tokenized stocks, bonds |

## 2. Key Test: When Does Non-Security Become Securities?

The core basis is the Howey test: as long as the project team promises at issuance that "rely on our efforts to make you profit," the token constitutes a securities offering (requiring SEC registration or exemption).

However, securities status is not permanent — once the project team fulfills its promise or explicitly renounces it, the token decouples from securities. For example, ETH's ICO back then may have been a securities offering, but today's secondary market trading is not a securities transaction.

## 3. Three Common Behaviors Clarified: None Constitute Securities Transactions

· **Mining:** Individual mining or joining mining pools are both automatic protocol rewards, not involving core management effort of others, non-securities transactions.

· **Staking:** Running your own node, delegating to third parties, or even using liquid staking protocols like Lido are all non-securities transactions. stETH is merely a receipt, not a security.

· **Airdrops:** Users pay no consideration (spend no money), failing to meet the first Howey prong of "investing money," therefore not a securities offering.

## 4. Massive Regulatory Shift: From "Regulation as Enforcement" to "Rules First"

The SEC acknowledged in the document that the past approach of using prosecutions to define boundaries caused industry uncertainty and suppressed innovation. Going forward, it will strictly follow this framework in deciding whether to prosecute, meaning regulatory expectations have finally become clear.

## 5. SEC and CFTC Division of Labor First Time Clarified

· **Digital Commodities** → CFTC (BTC, ETH, etc.)

· **Digital Securities** → SEC (Tokenized stocks, etc.)

The two agencies have launched the joint "Project Crypto" initiative to unify the regulatory framework, significantly reducing compliance costs and clearing the biggest obstacle for institutional entry.

## Summary

This document is not temporary policy, but the first time the U.S. federal regulatory level has created a legal identity system tailor-made for crypto assets. From now on, project teams can self-assess token attributes, exchanges can clarify token listing compliance, and investors can more clearly judge risks.

The door to compliance in the crypto world is slowly opening.