US Regulators Introduce New Framework for Crypto Asset Classification

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have established a comprehensive token taxonomy for crypto assets. This new framework introduces five distinct categories, only one of which includes assets considered securities.

Under this system, most crypto assets are classified outside the scope of securities regulation. The non-securities categories include Digital Commodities, Digital Collectibles, Digital Tools, and Payment Stablecoins. This broader classification means that various components essential to blockchain gaming—such as in-game items, governance tokens, and NFTs—are no longer considered securities.

The new framework also introduces the concept of 'temporal expiry,' where a token can change from being a security to a non-security as its network becomes more decentralized over time. This adaptive feature could significantly alter how crypto assets are launched and managed.