In the words of SEC Chairman Paul S. Atkins, “[a]fter more than a decade of uncertainty, this interpretation will provide market participants with a clear understanding of how the Commission treats crypto assets under federal securities laws. This is what regulatory agencies are supposed to do: draw clear lines in clear terms. It also acknowledges what the former administration refused to recognize – that most crypto assets are not themselves securities. And it reflects the reality that investment contracts can come to an end.”

The Interpretation—which applies prospectively—(1) classifies crypto assets into five categories and provides a coherent token taxonomy for digital commodities, digital collectibles, digital tools,…