SEC Introduces Framework for Classifying Digital Tokens

The U.S. Securities and Exchange Commission (SEC) has issued new guidance to clarify the classification of digital tokens under federal law.

In a joint effort with the Commodity Futures Trading Commission (CFTC), the SEC has introduced a framework that categorizes crypto assets into various groups, including digital commodities, collectibles, tools, stablecoins, and digital securities.

According to the new interpretation, only digital securities will be subject to SEC oversight, as they are essentially traditional securities tokenized. The SEC's chair noted that many tokens may not fall under securities laws but could still be regulated if marketed with an expectation of profit tied to managerial efforts.