The US Securities and Exchange Commission on Tuesday issued a new interpretation aimed at clarifying which cryptocurrencies are considered securities and how non-security tokens could still fall under federal securities laws.
The move comes as the crypto industry continues to push for clearer regulations.
Paul Atkins, speaking at an event hosted by The Digital Chamber in Washington, DC, emphasized the need for actionable solutions.
"It's way past time for us to stop diagnosing the problem and start delivering the solution," Atkins said, highlighting the SEC's focus on both investor protection and market clarity.
The new SEC interpretation categorizes crypto tokens into five groups: digital commodities, digital collectibles, digital tools, stablecoins, and digital securities. Federal securities laws apply only to digital securities.
However, the SEC clarified that a non-security token could become a security if it is sold as part of an investment in a common enterprise where buyers expect to earn profits, Reuters reported.
This step provides much-needed guidance for crypto companies navigating the often-confusing regulatory landscape.
The agency's approach also aligns with the US Commodity Futures Trading Commission, which has expressed support for clearer definitions within the crypto market.
US securities regulator issues long-awaited crypto guidance https://t.co/COTHnNo4Fd
— Reuters Legal (@ReutersLegal) March 17, 2026
SEC Proposes Safe Harbor for Crypto
In addition to classifications, Atkins introduced a safe harbor proposal that could allow crypto startups a more flexible path to raise capital.
The plan would offer a "fit for purpose startup exemption," enabling companies to raise funds or operate for a limited time without immediately triggering full SEC registration and disclosure requirements.
According to CNA, Atkins said the SEC plans to release the safe harbor proposal for public comment in the coming weeks.
Under Atkins' leadership, the SEC has been working on broader reforms to modernize capital markets regulations to accommodate blockchain and digital assets.
He noted that most cryptocurrencies are not securities, which are subject to registration and disclosure rules, but stressed that clear distinctions are essential for both investor protection and market growth.
The crypto industry has long argued that existing regulations were ill-suited for digital tokens, pushing for laws that clearly distinguish between securities, commodities, stablecoins, and other digital assets.
Join the Conversation