On 17 March 2026, the SEC and CFTC issued a joint interpretive release establishing a formal taxonomy for crypto assets and when such assets are securities under federal law, which is a critical analytical point in determining if regulations apply. While the release is an interpretation of existing laws, and not a final rulemaking, it is a major step toward a durable crypto regulatory regime.

The Five-Category Framework

The release classifies crypto assets into five categories, with implications as to whether the asset is (or is not) a “security”. In sum, the following categories of digital assets are generally not “securities”:

• Digital commodities—Assets whose value is derived from their programmatic network operation and…