SEC and CFTC Outline Crypto Asset Classification Rules

A regulatory shift is redefining how crypto assets are treated under U.S. securities law, as federal authorities outline when digital tokens fall within investment contract rules. The U.S. Securities and Exchange Commission (SEC), alongside guidance from the Commodity Futures Trading Commission (CFTC), on March 17, 2026, detailed both the classification of crypto assets and the conditions that trigger securities treatment.

Central to the framework is a clear threshold for when a non-security crypto asset becomes regulated as a security. The SEC stated:

“A non-security crypto asset becomes subject to an investment contract when an issuer offers it by inducing an investment of money…