On March 17, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) issued new guidance that effectively creates a formalized taxonomy for how regulators will govern crypto assets. The sweeping classification scheme is going to have major consequences for the future of the crypto markets, and, at least right now, the implications appear to be very positive.

So without further ado, here are four things that every crypto investor should understand about the new landscape.

Image source: Getty Images.

1. There are now five official categories for crypto assets

The new framework sorts digital assets into five buckets: Digital commodities, digital collectibles, digital tools, stablecoins, and…