SEC Introduces Framework for Crypto Asset Classification

The U.S. Securities and Exchange Commission (SEC) has taken steps to reshape the regulatory landscape for cryptocurrency markets. In a recent development, the agency introduced a framework to classify digital assets into five categories: digital commodities, digital collectibles, digital tools, stablecoins, and digital securities.

According to the SEC, most crypto assets are not securities by default, and only those classified as digital securities will be subject to federal securities laws. The framework aims to provide clarity on asset classifications and create pathways for companies to raise funds.