SEC recognizes most cryptocurrencies as commodities

Chair of the U.S. Securities and Exchange Commission (SEC), Paul Atkins, stated on March 19 at the Practising Law Institute conference that the SEC’s interpretive notice on the status of digital assets is only the first step, not the final point in shaping cryptocurrency regulation in the United States. “I want to assure the audience: this is the beginning of the journey, not its end,” Atkins emphasized.

Most cryptocurrencies excluded from securities laws

The notice published on March 18 formalized the position Atkins had previously outlined at the DC Blockchain Summit: most cryptocurrencies are not covered by federal securities laws. The only class of crypto assets that remains under SEC jurisdiction is tokenized traditional securities.

The document became one of the first practical outcomes of the memorandum of cooperation signed last week between the SEC and the Commodity Futures Trading Commission (CFTC). Atkins also clarified that digital commodities, digital instruments, digital collectibles, including NFTs, and stablecoins generally do not fall under the commission’s authority. This aligns with the SEC’s course after the leadership change: the regulator has halted a number of investigations and enforcement actions against crypto companies.

The new classification includes five categories: digital commodities, digital collectibles, digital instruments, stablecoins, and digital securities. The distinction between the first four and the last category fundamentally shifts the balance of power between the SEC and the CFTC: spot markets for most cryptocurrencies move under the jurisdiction of the commodities regulator.

CLARITY Act stalled in the Senate

The interpretive notice is intended as a temporary “bridge” while Congress develops a full legislative framework. The CLARITY Act, designed to formally expand the CFTC’s authority over digital assets, passed the House of Representatives in July 2025, but has not yet received a date for consideration in the Senate Banking Committee.

The main sticking point remains the issue of stablecoin yield — a source of disagreement between the crypto industry and the banking lobby. On Thursday, Republican senators held a closed meeting with White House crypto advisor Patrick Witt. According to a representative of Wyoming Senator Cynthia Lummis, the talks were “very productive and positive,” and on the issue of stablecoin yield the parties reached agreement “by 99%.” Negotiations on digital assets overall were also described as “in a good place.”

The SEC currently has only three of the five commissioners предусмотренных законом — all three are Republicans. A similar staffing situation exists at the CFTC. Atkins noted that the interpretive notice will give the regulator time to develop more detailed rules within a stable legislative framework that Congress is expected to create.

Thus, the U.S. digital asset market has received its first clear regulatory map without court precedents: most cryptocurrencies are officially classified as commodities rather than securities. Whether this structure will hold without a legislative foundation will depend on the progress of the CLARITY Act and whether the parties can fully resolve disagreements over stablecoins.

AI opinion

A historical analysis of regulatory cycles points to a characteristic pattern: interpretive notices without a legislative foundation remain vulnerable to changes in political direction. The current SEC classification is based on the position of a specific chair — the next head of the commission has the right to revise it without Congress. That is why the phrase “the beginning, not the end” of regulation is more accurate than it seems: the market has received a temporary map, but not a permanent address.

There is also an institutional issue that remains in the background: the CFTC is a regulator with a budget and staff historically focused on derivatives, not on trillion-dollar spot markets. Transferring oversight of most crypto assets to this agency without corresponding legislative expansion of its authority and resources is not so much a solution as a shift of the problem. Is the CFTC actually, rather than nominally, capable of handling the new burden?

See also: "Morgan Stanley filed for registration of its own exchange-traded fund"

#Token #CLARITY Act #U.S. Securities and Exchange Commission (SEC)

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