- Bitcoin and Ethereum have been classified as non-securities by the SEC under a new token framework.
- Investment contracts and certain disclosures still fall under securities laws.
The crypto world received a major update as the SEC confirmed that Bitcoin and Ethereum are not securities. The announcement comes alongside a new token framework aimed at clarifying which digital assets fall under the SEC’s authority.
SEC Introduces a Formal Token Taxonomy
During the DC Blockchain Summit 2026, SEC Chair Paul Atkins unveiled a new framework that classifies crypto assets into four non-security categories:
- Digital commodities – including Bitcoin and Ethereum
- Digital collectibles – unique tokens like NFTs
- Digital tools – tokens used for platform functionality
- Payment stablecoins – coins pegged to fiat currencies under the GENIUS Act
Atkins emphasized that these classifications rely on existing law and public input. “The SEC has ended its persistent failure to define when crypto assets comply with securities laws,” he stated, clarifying that the agency will now focus on traditional securities transactions.
Investment Contracts Still Under SEC Oversight
Even though Bitcoin and Ethereum are non-securities, investment contracts can still trigger securities laws. If an issuer makes promises that investors rely on, those contracts fall under SEC regulation.
Project teams must disclose all managerial efforts and representations clearly, so investors understand exactly what they are purchasing. Transparency remains key to avoiding unintentional securities violations.
Joint SEC and CFTC Guidance Expands Clarity
The SEC and Commodity Futures Trading Commission (CFTC) issued joint guidance to further define crypto asset categories. While digital securities remain under SEC oversight, payment stablecoins, digital tools, and digital collectibles generally fall outside securities laws.
The CFTC also granted a no-action letter to a non-custodial wallet provider, allowing derivatives and prediction market transactions under specific conditions. State authorities, such as Arizona, continue to enforce rules against platforms operating without compliance.
What This Means for Crypto Markets
This decision removes long-standing regulatory uncertainty for major crypto assets and allows broader market participants to trade Bitcoin and Ethereum with fewer restrictions.
However, the classification does not eliminate all obligations. Investment contracts and clear disclosures are still required. The new framework provides a structured, transparent approach that may encourage innovation in digital assets.
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