SEC Releases New Cryptocurrency Taxonomy

The US Securities and Exchange Commission (SEC) has introduced a new taxonomy that aims to clarify the regulatory status of various cryptocurrencies. According to the new framework, digital commodities, collectibles, tools, and stablecoins are not necessarily considered securities.

The SEC's categorization system divides cryptocurrencies into five categories: digital commodities, digital collectibles, digital tools, stablecoins, and digital securities. Digital commodities, such as Bitcoin and Ethereum, are no longer considered securities under the new framework, while stablecoins may or may not be subject to securities laws depending on their structure.

The release also provides clarity on the regulatory status of proof-of-stake networks, stating that covered protocol staking activities do not involve the offer and sale of a security. This supports tokens such as Solana, Cardano, and Avalanche, which have been operating in a more contested middle ground.