SEC Says Bitcoin, Ethereum Are Not Securities Under New Token Classification Framework

The U.S. Securities and Exchange Commission has said Bitcoin and Ethereum are not securities, placing both assets in a newly defined category of "digital commodities" under a formal token taxonomy unveiled at the DC Blockchain Summit 2026. SEC Chair Paul Atkins said the framework is intended to standardize how digital assets are categorized and to reduce regulatory uncertainty that has persisted for years. He said the approach is grounded in existing law and reflects public input, and that the SEC will narrow its focus to securities transactions rather than broader digital asset activity. Under the taxonomy, the SEC identifies four categories of crypto assets it considers nonsecurities: digital commodities, digital collectibles, digital tools, and payment stablecoins referenced under the GENIUS Act. Bitcoin and Ethereum are classified as digital commodities, keeping them outside securities regulation. Atkins said one category remains subject to securities laws: digital securities, described as tokenized versions of traditional financial instruments. The SEC said its oversight will be limited to assets that meet that definition. The agency also clarified how investment contracts apply in crypto markets. Even when a token itself is a nonsecurity, securities laws can still be triggered if it is offered or sold through an investment contract, such as when an issuer's representations or promises create investor reliance. The guidance calls for clear disclosure of any promises and the managerial efforts tied to the asset, with representations required to be explicit and unambiguous. Separately, the SEC and the Commodity Futures Trading Commission issued joint interpretive guidance outlining how the agencies assess whether a crypto asset qualifies as a security. The document reiterates that digital securities remain under SEC oversight, while payment stablecoins, digital tools, and digital collectibles generally fall outside securities laws unless issuer conduct brings a transaction within regulatory scope. The CFTC also issued a no-action letter to a noncustodial wallet provider, allowing certain derivatives and prediction market transactions under specified conditions. In a separate enforcement development, Arizona authorities filed criminal charges against a prediction market provider. The original report was published by The Coin Republic.