SEC designates Bitcoin, Ether, Solana, and 13 other cryptocurrencies as digital commodities, not securities.

March 19, 2026

On March 17th, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) released a 68-page interpretation that clarified the status of 16 cryptocurrency assets as digital commodities, not securities under federal law. This announcement marked a significant milestone as it provided much-needed clarity to an industry that had been grappling with regulatory uncertainty for over a decade.

The 16 digital commodities explicitly named in the document included popular cryptocurrencies such as Bitcoin, Ether, Solana, XRP, Dogecoin, Cardano, and others. These assets were classified into five categories, distinguishing them as digital commodities, digital collectibles, digital tools, stablecoins, or digital securities.

Of particular significance was the clarification provided on activities such as protocol mining, staking, and airdrops, which had been sources of regulatory ambiguity. The interpretation explicitly outlined that these activities were not securities transactions, providing legal certainty to participants engaging in these processes. For instance, protocol mining, the computational work validators perform on proof-of-work networks, was classified as an administrative activity rather than a securities transaction. Similarly, protocol staking on proof-of-stake networks and airdrops of non-security crypto assets were identified as activities falling outside securities law.

While the interpretive release was a positive step towards regulatory clarity, it was highlighted that this interpretation was not a statutory law but a framework for future legislation. The document complemented existing efforts to codify a comprehensive market structure framework into law, such as the CLARITY Act. The CLARITY Act, a bill aimed at enshrining the commodity versus security classification in statute, had progressed through the legislative process but had not yet become law.

In addition to the interpretive release, the SEC and CFTC had previously signed a Memorandum of Understanding (MOU) that established a Joint Harmonization Initiative to coordinate oversight efforts across policymaking, examination, and enforcement. This initiative aimed to clarify product definitions, reduce frictions for dually registered exchanges and intermediaries, and build a regulatory framework for crypto assets and emerging technologies.

Acknowledging the historic significance of this collaborative effort, SEC Chair Paul Atkins and CFTC Chair Michael Selig expressed optimism about the alignment of regulatory oversight. The MOU was viewed as a foundational step towards establishing a harmonized framework that would modernize oversight to match the evolving dynamics of the market, fostering innovation while ensuring compliance.

Overall, the joint interpretation released by the SEC and CFTC on March 17th represented a significant milestone in providing regulatory clarity to the cryptocurrency industry. By clearly delineating digital commodities from securities under federal law, the interpretation established a foundational framework for future legislative efforts, such as the CLARITY Act. This development marked a step towards a more coherent and responsive regulatory environment that sought to balance innovation with investor protection within the rapidly evolving FinTech landscape.