SEC draws the first formal line on which crypto assets are securities

The U.S. Securities and Exchange Commission (SEC) has issued new interpretive guidance clarifying how it views different categories of digital assets, while signaling that a broader safe harbor framework for crypto fundraising may soon follow.

Announced Tuesday, the SEC’s interpretation—issued jointly with the U.S. Commodity Futures Trading Commission (CFTC)—groups crypto tokens into five categories: digital commodities, digital collectibles, digital tools, stablecoins, and digital securities. Under the framework, only digital securities would fall under federal securities laws.

The move marks one of the clearest attempts yet by U.S. regulators to distinguish between token types and define when securities rules apply in the digital asset market.

Five token categories and when securities laws apply

According to the SEC, the new framework classifies crypto assets as:

• Digital commodities

• Digital collectibles

• Digital tools

• Stablecoins

• Digital securities

The agency said federal securities laws apply only to digital securities, reinforcing SEC Chair Paul Atkins’ previously stated view that most cryptocurrencies do not automatically qualify as securities.

However, the SEC also clarified that a token initially considered a non-security digital asset could still become subject to securities laws if it is offered or promoted in a way that creates an expectation of profit tied to a common enterprise. In that case, the offering itself may be treated as an investment contract, even if the underlying asset is not inherently a security.

This distinction is significant for token issuers, as it suggests that classification may depend not only on the asset’s features but also on how it is marketed and sold.

Atkins pushes for tailored fundraising exemptions

In remarks delivered Tuesday at an event hosted by The Digital Chamber in Washington, D.C., SEC Chair Paul Atkins said the agency should move beyond identifying regulatory gaps and begin implementing practical solutions for crypto companies.

“It’s way past time for us to stop diagnosing the problem and start delivering the solution,” Atkins said.

Atkins outlined a potential safe harbor proposal that could create what he described as “bespoke pathways” for crypto firms to raise capital while preserving investor protections.

The proposal under consideration would include a fit-for-purpose startup exemption, allowing blockchain and crypto entrepreneurs to either: