SEC and CFTC Release New Regulatory Guidance: Crypto Assets Divided into Five Categories, Most Do Not Fall Under Securities

BlockBeats News, March 18th, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) jointly issued a 68-page-long new regulatory guidance on Tuesday, clearly stating that most digital assets are not securities, aiming to provide a clearer regulatory framework for the market.

Regarding asset classification, the SEC clearly states that there are four categories of crypto assets that are not securities: digital commodities, digital collectibles, digital assets with utility, and payment stablecoins defined by the GENIUS Act. The only category of crypto assets still subject to securities laws is digital securities, which are tokenized forms of traditional securities. In terms of investment contract determination, the SEC clearly defines the termination conditions of an investment contract, requiring project parties to clearly and unambiguously disclose their committed core management behaviors. Once the investment contract is terminated, the related crypto assets can be exempt from securities law jurisdiction.

Regarding exemption pathways, Atkins proposed three proposed mechanisms: first, the "Startup Exemption," allowing project parties to raise up to $5 million within four years; second, the "Capital Exemption," allowing raising up to $75 million within 12 months and requiring the submission of disclosure documents to the SEC; third, the "Investment Contract Safe Harbor," providing clear non-securities identification standards for qualifying crypto assets. Atkins stated that the SEC plans to publicly solicit comments on the draft rules in the coming weeks and will propose rules with the CFTC to seek public input.