SEC Shifts Regulatory Stance on Cryptocurrency, Classifying Most Assets as Non-Securities

The US Securities and Exchange Commission (SEC) has introduced a new regulatory framework for the cryptocurrency market, taking a more hands-off approach to regulating digital assets.

According to the guidance, most major crypto assets will not be considered securities under federal law. The SEC has divided digital assets into five categories: digital commodities, digital collectibles, digital tools, stablecoins, and digital securities.

The framework allows certain assets to lose their status as regulated securities under specific conditions. A digital asset may be deemed a security when it is offered as an investment with an expectation of profits derived from the efforts of others.