The SEC and CFTC classify most crypto as non-securities, defining clear categories and easing rules to boost innovation.

The U.S. Securities and Exchange Commission (SEC), alongside the CFTC, has issued new guidance classifying most cryptocurrencies as non-securities, defining a "token taxonomy" that separates digital commodities, collectibles, tools, and stablecoins from digital securities. Only assets meeting the Howey test—investment contracts with profit expectations from others’ efforts—are considered securities. The SEC plans to propose a safe harbor framework, including a startup exemption and investment contract relief, to support innovation while protecting investors. The move marks a significant shift toward regulatory clarity, aiming to reduce uncertainty and foster growth in the digital asset market.