The US Securities and Exchange Commission (SEC) has issued guidance on the classification of cryptocurrency assets. According to the guidance, most cryptocurrency assets do not meet the definition of securities under federal law.
Specifically, the SEC has stated that protocol mining, staking, and airdrops are not investment contracts and therefore do not qualify as securities. This distinction is significant for market participants, as it provides clarity on how the Commission treats crypto assets under federal securities laws.
The guidance comes after more than a decade of uncertainty in the cryptocurrency industry, with the SEC Chairman noting that this interpretation will help to draw clear lines in clear terms. The Commodity Futures Trading Commission (CFTC) has also acknowledged the SEC's interpretation, stating that it will administer the Commodity Exchange Act consistent with the SEC's guidance.