The US Securities and Exchange Commission said most crypto assets are not securities under federal securities law, according to a new interpretative notice released on Tuesday.
The notice marked one of the first major crypto policy steps after the SEC signed a memorandum of understanding with the Commodity Futures Trading Commission.
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The SEC said the notice would help explain how non-security crypto assets fit under federal law while Congress continues work on digital asset market structure legislation. That legislation could later define more clearly how the SEC and CFTC divide oversight of the crypto market.
At the same time, the agency said the new interpretation creates a clearer SEC token taxonomy. It covers digital commodities, digital collectibles, digital tools, stablecoins, and digital securities.
The notice also explains how activities such as airdrops, protocol mining, protocol staking, and wrapping a non-security crypto asset may be treated under the law.
SEC token taxonomy draws a clearer line for crypto assets
The new SEC token taxonomy tries to separate different types of crypto assets instead of treating them as one group.
That matters because the crypto market includes payment tokens, stablecoins, collectibles, utility tokens, and assets that may represent traditional securities onchain.
In simple terms, the SEC said a crypto asset itself is not always a security. Instead, the legal issue may depend on how the asset is offered, sold, or used. Therefore, the agency is drawing a line between the token and the contract or arrangement around it.
The notice said this framework could act as an “important bridge” while lawmakers debate long term rules.
As a result, the SEC crypto assets position now looks more structured than earlier case by case arguments that often left market participants uncertain.
Paul Atkins SEC remarks back the non security crypto assets view
SEC Chair Paul Atkins said the notice reflects what he described as the proper role of regulators. He said, “This is what regulatory agencies are supposed to do: draw clear lines in clear terms.”
He also said the interpretation recognizes “that most crypto assets are not themselves securities.” In addition, Atkins said the notice reflects the reality that “investment contracts can come to an end.”
That statement is important because it suggests a token may no longer fall under securities rules if the original investment contract no longer exists.
According to Atkins’ prepared remarks for the DC Blockchain Summit on Tuesday, only one class of crypto related assets remains clearly under securities law.
He said those were “traditional securities that are tokenized.” In other words, tokenized securities still remain securities even if they move onto blockchain infrastructure.
SEC CFTC crypto divide moves closer to the center
The SEC told market participants to review the interpretation so they can better understand the regulatory line between the SEC and CFTC. That message came just after both agencies agreed to work more closely through their new memorandum of understanding.
This matters because lawmakers in the US Senate are still negotiating a digital asset market structure bill. That bill is widely expected to give the CFTC more authority over parts of the crypto market, especially where assets fall outside the definition of securities.
Because of that, the new SEC CFTC crypto framework may affect how firms classify products, explain token functions, and approach compliance.
It also puts more attention on whether a token is a non-security crypto asset, a tokenized security, or part of an investment contract.
SEC enforcement change adds another layer to the crypto assets debate
The notice came one day after a change in the SEC enforcement division. On Monday, the agency said enforcement director Margaret Ryan had resigned. The SEC then named principal deputy director Sam Waldon as acting enforcement director.
Former SEC official John Reed Stark criticized the move after Ryan’s departure. Stark said “not a single person on this planet” believed the commission’s statements about investor protection and accountability for individual wrongdoers.
He also said,
“The SEC has abandoned its identity.”
Stark added that the agency had changed from “the cop on Wall Street’s beat” into a body that works “more like a concierge service for the largest financial players in the country.”
Stark is a 19 year veteran of the regulator and founded the SEC’s Office of Internet Enforcement, according to his LinkedIn profile.
SEC leadership stays limited as crypto policy changes
The SEC now has only three leaders on a commission designed for five members. The current commissioners are Paul Atkins, Mark Uyeda, and Hester Peirce. All three are Republicans.
The CFTC also remains short staffed. As of Tuesday, it had only one Senate confirmed member. Meanwhile, President Donald Trump had not announced plans to nominate more commissioners to either agency.
Even so, the SEC crypto assets notice moved ahead. It set out a formal view that most crypto assets securities questions should not start from the assumption that every token is a security.
Instead, the agency said the key issue is whether the asset is a non-security crypto asset or a tokenized security under federal securities law.
Tatevik Avetisyan is an editor at Kriptoworld who covers emerging crypto trends, blockchain innovation, and altcoin developments. She is passionate about breaking down complex stories for a global audience and making digital finance more accessible.
📅 Published: March 18, 2026 • 🕓 Last updated: March 18, 2026
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