US Regulators Clarify Digital Commodities Classification for Major Cryptocurrencies

The US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have issued a joint clarification that 18 major cryptocurrencies are classified as digital commodities.

According to the SEC, these tokens derive their value from blockchain activity, including transaction validation, governance participation, and network security. This classification is distinct from securities, which grant holders rights to income, profits, or ownership in a business enterprise.

The 18 cryptocurrencies identified as digital commodities include Bitcoin (BTC), Ether (ETH), Solana (SOL), XRP, Cardano (ADA), Avalanche (AVAX), Polkadot (DOT), Chainlink (LINK), Litecoin (LTC), and others. The CFTC noted that these tokens are not required to be associated with derivatives markets to qualify as digital commodities.

The clarification reduces securities-related regulatory risk for investors and clarifies how assets may be traded and listed. This development is seen as a significant shift in crypto regulation, which has been subject to uncertainty and scrutiny over the years.