SEC Introduces Framework Classifying Certain Crypto Assets as Non-Securities

The US Securities and Exchange Commission (SEC) has introduced an interpretive framework that defines which crypto assets are not securities. This new framework, announced by SEC Chair Paul Atkins, classifies digital commodities, digital tools, and digital collectibles as generally outside the SEC's jurisdiction.

The classification includes stablecoins and non-fungible tokens (NFTs), which are expected to benefit from the reduced regulatory uncertainty. The framework relies on the long-standing legal standard from SEC v. W.J. Howey Co., which determines whether an asset qualifies as a security based on promises of profits or ongoing managerial efforts.