SEC Clarifies Cryptocurrency Classification, Market Remains Cautious

The Securities and Exchange Commission (SEC) has provided much-needed clarity on the classification of cryptocurrencies, stating that most tokens will not be considered securities under federal law.

This new framework suggests that many tokens may fall outside securities laws depending on their structure, distribution, and use case. The SEC has also classified 16 major crypto assets as digital commodities, outside the jurisdiction of securities law.

Despite this clarification, the crypto market has shown little reaction, with Bitcoin trading near the $74,000 level and major altcoins showing limited movement. Investor focus remains on macro catalysts, with traders positioning cautiously ahead of the Federal Reserve's rate decision.