The SEC issued an interpretation that clarifies how federal securities laws apply to certain crypto assets and transactions involving crypto assets, it said in a Tuesday (March 17) press release. The regulator added that this move complements congressional efforts to codify a comprehensive market structure framework.

The SEC’s interpretation provides a coherent token taxonomy for digital commodities, digital collectibles, digital tools, stablecoins and digital securities; addresses how a crypto asset that is not a security may become subject to, or stop being subject to, an investment contract; and clarifies the application of federal securities laws to airdrops, protocol mining, protocol staking and the wrapping of a nonsecurity…