Background

On March 17, 2026, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) (together, the Agencies) released a Joint Interpretation regarding the application of federal securities laws with respect to certain crypto assets and transactions involving crypto assets. The interpretation is a welcome start to regulatory clarity and reaffirmation of the Agencies’ cumulative efforts in providing guidance, especially on the heels of last week’s Joint Memorandum of Understanding (MOU).

The Five-Category Taxonomy

At the core of the interpretation is a classification framework that divides crypto assets into five categories based on their characteristics, uses, and functions: (i) digital…