Stellar and Blockchain Groups File with SEC for Clearer Digital Commodity Rules

• Stellar and five other blockchain groups ask the SEC to write the digital commodity definition directly into proposed federal regulations.
• The filing seeks to separate a crypto asset’s status from investment contracts used to sell it, preserving distinct legal tests.
• The SEC has yet to adopt the requested wording, leaving the coalition’s proposed changes subject to the rulemaking process.

XLM features in a joint filing seeking clearer digital commodity definitions in federal crypto rules. The organizations want the SEC to distinguish token status from investment-contract sales.

Diana (@InvestWithD) reports that the Stellar Development Foundation has asked the SEC to clarify digital commodity rules. The filing also carries support from Hedera, Aptos Labs, Ava Labs, the Cardano Foundation, and Chainlink Labs. Their letter responds to the SEC’s proposed Regulation Crypto Assets framework.

The first image shows the submission addressed to SEC Secretary Vanessa A. Countryman. It urges the commission to make the digital commodity definition a part of the regulatory text. Groups say participants should have unambiguous text that they can refer to in the rules.

The letter defines Layer 1 networks as “applications, transactions, staking, mining, governance infrastructure. These systems are maintained by the network participants and developed by them. The signatories seek rules that account for how these networks operate.

The filing does not announce a new SEC decision on Stellar or XLM. Instead, it requests changes to a proposed regulatory framework. The commission must consider the comments before finalizing the relevant provisions.

The second image focuses on Question 131 and proposed Rule 400. The highlighted passage concerns digital commodities sold through investment contracts. The groups want the rules to distinguish the asset from the transaction used to sell it.

Under this approach, a crypto asset would not automatically become a security simply because it appears in an investment contract. However, the particular offering or transaction could still fall under securities laws. The letter asks the SEC to state this distinction directly in the regulation.

Diana’s post says the SEC named XLM, XRP, LINK, HBAR, and other assets as digital commodities in March. The filing seeks to carry that treatment into the actual rule text. It does not mean every transaction involving these tokens falls outside securities regulation.

The submission also addresses secondary-market transactions and the proposed safe harbor. The text questions whether the draft adequately explains the safe harbor’s voluntary nature. These requests concern how the rules would work in practice, beyond the definition itself.

For XLM, the request concerns how regulators describe the token under the proposed framework. It does not settle every legal question involving Stellar-related transactions. The circumstances of a particular offering may still determine which laws apply.

The filing brings together organizations from several blockchain ecosystems. There are different networks and applications for each of these stars: Stellar, Hedera, Aptos, Avalanche, Cardano and Chainlink. They’ve shared concerns in their joint letter regarding classification and token sales.

The requested language might provide developers and market participants a better reference point. But a submitted comment does not guarantee SEC adoption or binding. Finally, the proposed wording is subject to change or elimination by final regulation.

No XLM price information, trading volume or technical indicators are included in the images. They can therefore not be used to form opinions on short-term market movements. The documented development is a regulatory change and not a change in the condition of trading.

Now the ball is in the SEC’s court, with regards to the proposed rules and public feedback. If the commission adopts the language requested, the final language would clarify the difference desired by the signatories. The filing is not yet a final rule of the Federal Regulations but a request.