The U.S. Securities and Exchange Commission (SEC) issued a new interpretation clarifying the mechanism for classifying cryptocurrencies, categorizing digital assets into different classes, some of which are subject to the commission's oversight, while others fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC).
According to this interpretation, cryptocurrencies have been classified into five main categories:
📌 Digital Commodities
📌 Digital Collectibles
📌 Digital Instruments
📌 Stablecoins
📌 Digital Securities
👈 Currencies classified as digital commodities
According to the new directives, the list of cryptocurrencies classified as digital commodities includes:
Bitcoin (BTC)
Ether (ETH)
Bitcoin Cash (BCH)
Litecoin (LTC)
Cardano (ADA)
Solana (SOL)
Avalanche (AVAX)
Polkadot (DOT)
Chainlink (LINK)
Stellar (XLM)
Tezos (XTZ)
Hedera (HBAR)
Aptos (APT)
Dogecoin (DOGE)
Shiba Inu (SHIB)
XRP (XRP)
The authority confirmed that these currencies are classified as Non-Security Digital Commodities, meaning they are not directly subject to securities laws, unless marketed or offered in a manner that meets the criteria of an Investment Contract.
👈 Indicators of the new classification
Classifying cryptocurrencies as digital commodities is a pivotal step in regulating this rapidly growing market, as it alleviates the regulatory pressures associated with being considered securities, such as strict registration and disclosure requirements.
This classification also provides greater legal clarity for investors and businesses, and enhances market confidence by identifying the competent regulatory authority, which is the Commodity Futures Trading Commission (CFTC) instead of the Securities and Exchange Commission in many cases. At the same time, it opens the door to innovation and growth, as startups become more capable of developing their projects and attracting funding without complex constraints, while maintaining an appropriate level of protection for investors.