[Bitcoin Now] US SEC: "Most Crypto Assets Are Not Securities"... Regulatory Clarity Secured

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have set forth guidelines indicating that most crypto assets will not be uniformly classified as "securities." According to foreign media, this interpretive guidance is seen as providing the regulatory clarity that the crypto asset industry has long demanded.

Paul Atkins, Chairman of the U.S. Securities and Exchange Commission (SEC). Photo by Reuters Yonhap News

On March 17 (local time), the SEC and CFTC jointly issued interpretive guidance on crypto assets, clarifying the criteria for applying federal securities laws. Paul Atkins, Chairman of the SEC, stated, "Digital commodities, digital collectibles, digital tools, and payment stablecoins are not considered securities," emphasizing, "The application of securities laws is limited to digital securities, which are tokenized traditional securities."

This guidance is significant in that it classifies crypto assets according to their nature and provides clearer criteria on when securities laws would apply. However, the SEC explained that even if a crypto asset is classified as a non-security, it could still be considered a security if it is issued as an investment contract or sold in a way that creates an expectation of profit. The SEC also added that if such an investment contract is terminated, its classification as a security would cease as well.

In a statement, Chairman Atkins said, "This interpretation, reached after more than a decade of deliberation, will provide market participants with a clear understanding of how the Commission treats crypto assets under federal securities law," adding, "This action will serve as an important bridge for entrepreneurs and investors while Congress works in a bipartisan manner to establish foundational legislation."

The industry has pointed out that existing U.S. regulations have failed to adequately reflect the unique characteristics of crypto assets. In particular, industry stakeholders have argued that clear criteria are needed to distinguish whether a crypto asset is a security, a commodity, or falls into another category such as a stablecoin. If classified as a security, crypto assets face significantly heavier regulatory burdens, such as registration and disclosure obligations, making such regulatory uncertainty a notable risk factor.

Some have noted that this move marks a departure from the approach taken under the Joe Biden administration. At that time, former SEC Chairman Gary Gensler, after taking office in 2021, considered most crypto assets to be securities and engaged in years-long legal battles with major crypto companies such as Ripple.

CoinDesk, a crypto-focused media outlet, commented on the interpretive guidance, stating, "While it does not yet carry the formal legal force of regulation, it is a step that Chairman Atkins—appointed by President Donald Trump to pursue pro-crypto policies—had previously signaled." Bloomberg also described it as "an important milestone in clarifying which types of digital assets the SEC considers securities."

This content was produced with the assistance of AI translation services.