US Regulators Classify Leading Crypto Tokens as Digital Commodities

The US regulatory landscape for cryptocurrencies has undergone a significant change with the joint guidance issued by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). According to the new taxonomy, leading crypto tokens are now classified as 'digital commodities' rather than securities. This shift in classification affects 16 major assets, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Cardano (ADA), XRP, and others.

The guidance introduces a clear distinction between protocol tokens, NFTs, stablecoins, and digital securities, with only the latter treated as securities. This means that activities such as protocol mining, staking rewards, and certain airdrops are no longer automatically considered securities transactions. The default assumption for large-cap tokens is now 'commodity-style token' rather than 'unregistered security,' reducing legal risk for exchanges, brokers, and custodians.

The new taxonomy does not apply to tokenized stocks, bonds, and funds, which remain subject to securities rules. However, the shift in classification has significant implications for smaller tokens and edge cases, which will still be evaluated on a case-by-case basis using 'facts and circumstances tests.' The next phase is whether Congress and future rulemaking lock this taxonomy in or reopen the classification debate.