The SEC has issued an interpretive guidance on cryptocurrency classification, providing clarity on which types of digital assets fall under federal securities laws.
According to the guidance, four categories of cryptocurrencies are exempt from securities regulations: decentralized network tokens, NFTs and similar collectibles, access-credential tools, and GENIUS Act-compliant stablecoins. These exemptions apply unless an issuer offers a token as part of an investment contract, in which case the status may temporarily change.
The guidance also clarifies that investment contracts have a defined end, meaning that a token sold as part of one does not remain a security indefinitely once the issuer has fulfilled or abandoned their obligations. This distinction is intended to simplify regulatory compliance for issuers and investors alike.
In related news, SEC Chairman Paul Atkins outlined three potential safe harbors for upcoming Regulation Crypto Assets rulemaking: a startup exemption, a fundraising exemption, and an investment contract safe harbor. The proposed rule is expected to provide additional clarity on token classification and facilitate growth in the crypto market.