U.S. SEC issues first-ever definitions for what crypto assets are securities

The SEC has defined for the first time what constitutes a security in the crypto space, providing clarity on the regulation of digital assets.

The U.S. Securities and Exchange Commission (SEC) has taken a groundbreaking step in the regulation of crypto assets, establishing its first-ever definitions for what constitutes a security in the coin crypto space. This move comes after years of ambiguity regarding how digital assets are treated under federal law. What Are the SEC's New Definitions of Crypto Assets? On March 17, 2026, the SEC released informal guidance detailing how it will classify different types of crypto assets, aiming to illuminate the regulatory landscape that has long puzzled market participants. SEC Chairman Paul Atkins, who was appointed with a pro-crypto agenda, emphasized that this new classification returns the agency to its primary focus of overseeing securities markets. The guidance, issued in collaboration with the Commodity Futures Trading Commission (CFTC), outlines four categories of crypto tokens from the SEC's legal standpoint. Atkins specified that only one of these categories, digital securities, falls under the purview of securities laws. He stated, "Most crypto assets are not themselves securities," marking a shift from previous regulatory stances. How Does This Change the Game for Crypto Regulation? This interpretive guidance does not yet hold the legal weight of a formal rule but lays the groundwork for future regulatory clarity. Atkins announced that a more formal rule, expected to exceed 400 pages, will be proposed in the next week or two, which includes plans for an "innovation exemption" specifically tailored for crypto firms. The SEC's new framework clarifies various elements of the coin crypto ecosystem, including digital commodities, digital collectibles, stablecoins, and the operational nuances of airdrops and protocol staking. Such clarity is essential, especially as the crypto landscape continues to evolve rapidly. As noted by CFTC Chairman Mike Selig, “For far too long, American builders, innovators, and entrepreneurs have awaited clear guidance on the status of