- The United States Securities and Exchange Commission (SEC) issued broad guidance stating most crypto assets are not securities.
- Actions like protocol mining, staking, and airdrops are specifically noted as not meeting the definition of an investment contract.
- The Commodity Futures Trading Commission (CFTC) agreed to administer its rules consistently with the SEC’s new interpretation.
In a landmark move on Tuesday, SEC Chair Paul Atkins declared that “most crypto assets” are not securities, according to a major statement. This new guidance provides crucial distinctions for what constitutes an investment contract and what does not.
The framework clarifies that protocol mining, staking, and crypto airdrops do not meet the securities definition. Consequently, this ends over a decade of regulatory uncertainty for the industry.
“This is what regulatory agencies are supposed to do: draw clear lines in clear terms,” Atkins said. He criticized the prior administration’s heavy reliance on the Howey Test as a “persistent failure to provide clarity.”
Signaling a shift, Atkins later quipped, “We’re not the Securities and Everything Commission.” His remark prompted applause at the DC Blockchain Summit.
Meanwhile, the CFTC pledged to align its oversight with the SEC’s stance. This coordinated effort aims to complement ongoing Congressional work on crypto market structure.
Although the CLARITY Act remains stalled in Congress, regulators are not waiting to establish clearer rules. This guidance acts as a bridge for entrepreneurs until formal legislation passes.
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