The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) jointly released a 68-page guidance clarifying that most cryptocurrencies are not securities. The guidelines detail the classification of stablecoins, digital goods, and “digital instruments,” all of which are considered non-securities. They explain how “non-securities crypto assets” can be transformed into securities, and how federal securities laws apply to mining, protocol staking, and airdrops.
Digital goods are defined as assets that derive value from and are intrinsically linked to the programmatic operation and supply and demand dynamics of a functional crypto system. Digital collectibles are also not considered securities. Atkins stated, “We are no longer the ‘Securities and All Things Committee,’” a stark contrast to the stance of former SEC Chairman Gary Gensler, who considered most cryptocurrencies as securities. CFTC Chairman Michael Selig also attended the summit.
The U.S. SEC and CFTC signed a memorandum of understanding to collaborate on developing crypto policies and promoting the launch of new products. The U.S. SEC and CFTC are advancing regulatory plans targeting the crypto industry and prediction markets. The acting chairman of the U.S. CFTC said the turf war with the SEC is over and the agencies are seeking to cooperate in the crypto field. The U.S. SEC and CFTC have teamed up for the first time, potentially allowing perpetual contracts and 24/7 markets to be legal.
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