The US Securities and Exchange Commission issued a long-awaited token taxonomy on Tuesday, a key step forward laying out which types of digital assets it deems to be securities. The guidance carves out payment stablecoins, digital collectives and digital commodities as non-securities. It also clarifies how federal securities laws apply to protocol mining, staking and crypto airdrops, the SEC said in a memo.
The token taxonomy also sets out asset classifications and clarifies regulatory considerations for issuers and platforms, potentially affecting exchanges, miners, and developers’ compliance practices. The joint action by the SEC and CFTC signals closer regulatory alignment in the crypto space. While providing greater clarity, the framework aims to balance investor protection with innovation as digital assets evolve, with ongoing oversight from the two agencies.
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