ChainCatcher report: Alex Thorn, Head of Research at Galaxy Research, posted on X that on Tuesday this week, the U.S. Securities and Exchange Commission (SEC), in coordination with the Commodity Futures Trading Commission (CFTC), issued landmark guidance classifying digital assets into five categories: digital commodities, digital collectibles, digital tools, stablecoins, and digital securities (tokenized securities), explicitly stating that only the last category constitutes a security and must be registered or exempted under federal securities laws. This guidance, formally published in the Federal Register as an interpretive rule issued at the commission level, explicitly replaces the “investment contract” analytical framework used since the Gensler era in 2019, and establishes two clear pathways for tokens to cease being classified as securities: first, if the issuer completes all core managerial obligations promised to investors, the investment contract terminates, allowing the token to be freely traded on secondary markets as a non-security; second, if the issuer abandons the project or remains inactive for an extended period, the investment contract also terminates. Additionally, the guidance clarifies that airdrops, mining, and staking generally do not constitute securities transactions, and neither wrapping nor unwrapping assets alters their securities status. Alex Thorn believes this guidance officially marks the end of the Gensler era’s adversarial regulatory stance toward the crypto industry, providing crucial clarity to support further institutional entry. However, he cautions that interpretive rules lack legal enforceability and can be overturned at any time by a new administration—this is precisely why the industry continues to push for the enactment of the CLARITY Act.
SEC and CFTC Release Landmark Digital Asset Classification Framework
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Summary
The U.S. SEC and CFTC have released a new digital asset regulatory framework, classifying assets into five categories: digital commodities, collectibles, tools, stablecoins, and securities. The update replaces the 2019 investment contract model and provides two pathways for tokens to avoid being classified as securities. Alex Thorn of Galaxy Research noted that the shift signals a more accommodating approach to crypto asset classification, though its non-binding nature leaves it susceptible to reversal.
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