U.S. regulators—the Securities and Exchange Commission and the Commodity Futures Trading Commission—have jointly published a digital asset taxonomy that groups crypto assets into five distinct categories. The move aims to clarify how securities and commodities laws apply to digital markets, following a Memorandum of Understanding signed by both agencies.
Five Categories and Jurisdictional Lines
The framework defines digital commodities, stablecoins, tokenized securities, NFTs, and digital tools. Each category reflects an asset's role within financial systems. Notably, digital commodities are non-securities driven by supply, demand, and system functionality. Examples include Bitcoin, Ether, Solana, and XRP, all falling under CFTC oversight. Tokenized securities, regardless of blockchain use, remain subject to securities laws and are overseen by the SEC.
Stablecoins and Utility Tokens
The SEC stated that payment stablecoins defined under the GENIUS Act do not qualify as securities, treating them more like regulated payment instruments. Digital tools (often called utility tokens) used for access, identity, or credentials likewise fall outside securities laws. NFTs, categorized as digital collectibles, receive similar treatment unless structured differently.
Dynamic Nature and the Howey Test
Regulators emphasized that classification depends on how an asset is actually used. A non-security crypto asset can become an investment contract under specific conditions—when issuers promote profit expectations tied to managerial efforts, triggering the Howey Test. The SEC confirmed that activities such as protocol mining, staking, and wrapping generally do not involve securities offerings. Additionally, obligations may terminate once issuers fulfill or default on commitments.
The SEC said the framework provides a consistent basis for firms assessing compliance risks. By cutting jurisdictional ambiguity between the two watchdogs, the taxonomy offers crypto projects a clearer path to regulatory alignment.