The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission issued joint interpretive guidance on March 17, 2026, declaring that most crypto assets are not securities under federal law. The guidance classifies major cryptocurrencies including Bitcoin, Ethereum, Solana, and XRP as digital commodities, ending more than a decade of regulatory uncertainty that has shaped how crypto startups operate, raise capital, and build products in the United States.
- The SEC and CFTC jointly declared on March 17, 2026, that most crypto assets are not securities and instead fall into categories including digital commodities, digital collectibles, digital tools, and stablecoins.
- Bitcoin, Ethereum, Solana, XRP, Cardano, Avalanche, Polkadot, Chainlink, Dogecoin, and Shiba Inu were explicitly named as digital commodities in the SEC’s interpretation.
- The SEC previewed safe harbor exemptions for crypto startups valued under $5 million, with proposed rules expected in the coming weeks as of March 18, 2026.
What the SEC and CFTC Crypto Guidance Actually Says
The SEC’s interpretation establishes a five-category token taxonomy that divides all crypto assets into digital commodities, digital collectibles, digital tools, stablecoins, and digital securities. Only the last category, digital securities, falls under the SEC’s direct regulatory jurisdiction. The agency determined that digital commodities derive value from programmatic crypto system operation rather than the “expectation of profits from the managerial efforts of others,” the standard that defines a security under the Howey test.
The guidance also clarifies that protocol mining, protocol staking, certain airdrops to protocol users, and some wrapped non-security tokens do not constitute securities transactions. SEC Chair Paul S. Atkins said in a statement, “The SEC’s persistent failure to provide clarity on this question is over.” The CFTC simultaneously announced it will administer the Commodity Exchange Act consistently with the SEC’s interpretation, designating certain non-security crypto assets as commodities under its own authority.
Background on the Regulatory Shift
The joint guidance follows a March 12 memorandum of understanding between the SEC and CFTC designed to harmonize their overlapping authority over digital assets. For years, the two agencies operated with conflicting frameworks that forced crypto founders to guess which regulator would claim jurisdiction over their products. That ambiguity drove companies offshore or kept them from launching in the U.S. at all.
CFTC Chairman Michael S. Selig said the agencies are committed to “fostering a regulatory environment that allows the crypto industry to flourish in the United States with clear and rational rules.” Miller Whitehouse-Levine, CEO of the Solana Policy Institute, called the guidance “of profound importance, and it’s what we’ve been asking for from the agency for 10 years,” according to DL News.
What This Means for Crypto Founders and Startups
The SEC previewed safe harbor exemptions for startups valued under $5 million, giving early-stage crypto companies room to experiment within their first four years without triggering full securities compliance. Entrepreneurs can also raise up to $75 million through investment contracts under the proposed framework. Detailed rules are expected for public comment “in the coming weeks,” according to the SEC.
Traditional financial institutions now face lower barriers to entering the crypto market, with spot exchange-traded fund products based on newly classified digital commodities expected to expand. For founders already building in the space, the guidance removes the legal gray area around staking rewards, airdrops used for community growth, and token utility models that previously risked SEC enforcement. Founders navigating SEC filing requirements for blockchain startups now have a clearer path forward, though the interpretation could be reversed by future SEC leadership unless Congress passes the Clarity Act to make the framework permanent. The SEC has also been active on other fronts this month, including a proposal to end mandatory quarterly earnings reports for public companies.
Frequently Asked Questions
What Did the SEC and CFTC Announce About Crypto Assets?
On March 17, 2026, the SEC and CFTC issued joint interpretive guidance declaring that most crypto assets, including Bitcoin, Ethereum, Solana, and XRP, are not securities and instead qualify as digital commodities. The guidance establishes a five-category token taxonomy and clarifies that mining, staking, and airdrops are not securities transactions.
How Does the New SEC Crypto Guidance Affect Startups?
The SEC previewed safe harbor exemptions allowing startups valued under $5 million to experiment within their first four years, and entrepreneurs can raise up to $75 million through investment contracts. The guidance reduces compliance uncertainty that has historically blocked crypto startups from operating in the United States.
Which Cryptocurrencies Are Now Classified as Digital Commodities?
The SEC named Bitcoin, Ether, Solana, XRP, Cardano, Avalanche, Polkadot, Chainlink, Dogecoin, and Shiba Inu among the assets classified as digital commodities. Digital commodities are defined as assets that derive value from programmatic crypto system operation rather than managerial efforts.
