SEC and CFTC Draw Five-Category Token Map, Opening Path for Issuance and Trading
A joint March 2026 interpretation carves out four non-security crypto asset classes, clarifies airdrops and staking, and previews exemptions that could reshape token fundraising.
On March 17, 2026, the SEC and CFTC jointly released a token taxonomy with five categories: digital commodities, digital collectibles, digital tools, stablecoins, and digital securities.[^2332] Chair Paul Atkins said four of those categories are not securities. Only digital securities—tokenized traditional securities—fall under securities law.[^2335] The interpretation also covers how a non-security crypto asset can become subject to an investment contract and how it can stop being one. That distinction matters for token lifecycle management.[^2333]
Crucially, the interpretation clarifies how federal securities laws apply to airdrops, protocol mining, protocol staking, and wrapping a non-security crypto asset.[^2334] DeFi protocols that rely on these mechanisms now face less legal uncertainty. The CFTC said it will administer the Commodity Exchange Act in line with the SEC’s interpretation, adding that certain non-security crypto assets could qualify as commodities under the CEA.[^2340]
Atkins also previewed two fundraising exemptions. A startup exemption could run up to four years and let developers raise as much as $5 million during that period.[^2336] A broader exemption would allow entrepreneurs to raise up to $75 million in any 12-month period while still using other registration exemptions.[^2337] These safe harbors would create codified pathways for token issuance, cutting reliance on ad-hoc enforcement guidance.
The SEC’s 2026 Regulatory Agenda reinforces the shift. It says the agency is “creating clear rules of the road for capital raising with crypto assets, and providing clarity as to how market participants can custody and facilitate trading of tokenized securities onchain.”[^2331] The agenda includes planned amendments to Exchange Act rules for trading crypto assets on alternative trading systems and national securities exchanges, plus updates to broker-dealer financial responsibility and recordkeeping/reporting rules (Rules 15c3-1, 15c3-3, 17a-3, and 17a-4).[^2338] These changes target the infrastructure for compliant secondary trading and custody.
The joint interpretation and regulatory agenda mark a shift from enforcement-first to rulemaking-first. For market participants, the immediate takeaway is lower legal ambiguity for token issuance, custody, and secondary trading, especially for onchain securities and tokenized real-world assets. For DeFi protocols, the explicit treatment of protocol staking and wrapping suggests the agencies are trying to separate protocol-level functionality from securities offerings—something that could matter for aggregator front ends, bridges, and LST/LRT designs. The biggest unresolved variable is whether Congress finalizes broader market-structure legislation; the agencies themselves describe their framework as a bridge pending statutory action.
Provenance ledger
10 claims web-citedEvery claim below cites a source URL, and each URL was checked for validity before publish. The excerpt shown is the researcher's own summary of the page — it is not re-derived from the source, so it is not a verified verbatim quote. Follow the link to confirm any claim against the original. Citation markers in the text jump here.
[1] The SEC’s 2026 Regulatory Agenda says the agency is creating clearer rules for crypto-asset capital raising and for custody/trading of tokenized securities onchain, while still pursuing bad actors and maintaining investor protection guardrails. web-cited
“creating clear rules of the road for capital raising with crypto assets, and providing clarity as to how market participants can custody and facilitate trading of tokenized securities onchain. All while ensuring strong investor protection guardrails are in place and continuing to pursue bad actors who violate the law.”
This excerpt was not re-derived from the source page, and may paraphrase or condense it. Check the source before relying on it.
[2] On March 17, 2026, the SEC and CFTC jointly issued an interpretation that provides a token taxonomy with five categories: digital commodities, digital collectibles, digital tools, stablecoins, and digital securities. web-cited
“Provides a coherent token taxonomy for digital commodities, digital collectibles, digital tools, stablecoins, and digital securities.”
This excerpt was not re-derived from the source page, and may paraphrase or condense it. Check the source before relying on it.
[3] The joint SEC-CFTC interpretation says a non-security crypto asset can become subject to an investment contract and can later cease to be subject to one, which matters for how securities-law coverage starts and ends. web-cited
“Addresses how a ‘non-security crypto asset’—which is a crypto asset that itself is not a security—may become subject to, and how it may cease to be subject to, an investment contract.”
This excerpt was not re-derived from the source page, and may paraphrase or condense it. Check the source before relying on it.
[4] The same interpretation explicitly clarifies how federal securities laws apply to airdrops, protocol mining, protocol staking, and wrapping of a non-security crypto asset. web-cited
“Clarifies the application of federal securities laws to airdrops, protocol mining, protocol staking, and the wrapping of a non-security crypto asset.”
This excerpt was not re-derived from the source page, and may paraphrase or condense it. Check the source before relying on it.
[5] Chair Paul Atkins said the SEC’s March 17, 2026 interpretation establishes four non-security categories and leaves only digital securities—tokenized traditional securities—within securities-law coverage. web-cited
“establishes four asset categories that are not deemed securities: digital commodities, digital collectibles, digital tools, and payment stablecoins under the GENIUS Act” and “only one crypto asset class remains subject to the securities laws: digital securities, namely traditional securities that are tokenized.”
This excerpt was not re-derived from the source page, and may paraphrase or condense it. Check the source before relying on it.
[6] Atkins previewed a proposed startup exemption that could last up to four years and allow developers to raise up to $5 million during that period. web-cited
“Such an exemption could last (say up to four years)” and “could also allow entrepreneurs to raise up to a defined amount (say $5 million) during the four-year period.”
This excerpt was not re-derived from the source page, and may paraphrase or condense it. Check the source before relying on it.
[7] Atkins also previewed a fundraising exemption that could allow crypto entrepreneurs to raise up to $75 million in any 12-month period. web-cited
“Entrepreneurs could raise up to a defined amount (say $75 million) during any 12-month period while retaining the ability to rely on other exemptions from registration under the Federal securities laws.”
This excerpt was not re-derived from the source page, and may paraphrase or condense it. Check the source before relying on it.
[8] The SEC’s market-structure rulemaking agenda includes planned amendments to Exchange Act rules for trading crypto assets on ATSs and national securities exchanges, plus crypto-specific broker-dealer financial responsibility and recordkeeping/reporting changes. web-cited
“amendments to current SEC rules to account for the trading of crypto assets on alternative trading systems and national securities exchanges” and “amendments to Rules 15c3-1, 15c3-3, 17a-3, and 17a-4 with respect to the application of these rules to crypto assets.”
This excerpt was not re-derived from the source page, and may paraphrase or condense it. Check the source before relying on it.
[9] The SEC’s regulatory agenda also contemplates rules on the offer and sale of crypto assets that may include exemptions and safe harbors, indicating a shift toward codified pathways for token issuance. web-cited
“creating clear rules of the road for capital raising with crypto assets” plus the agenda’s stated focus on rulemaking for crypto assets and tokenized securities.
This excerpt was not re-derived from the source page, and may paraphrase or condense it. Check the source before relying on it.
[10] The CFTC said its March 17, 2026 action will make the agency administer the Commodity Exchange Act consistently with the SEC’s interpretation and that certain non-security crypto assets could meet the definition of a commodity under the CEA. web-cited
“The CFTC joined the interpretation to provide guidance the CFTC and its staff will administer the Commodity Exchange Act consistent with the SEC’s interpretation” and “certain non-security crypto assets could meet the definition of ‘commodity’ under the CEA.”
This excerpt was not re-derived from the source page, and may paraphrase or condense it. Check the source before relying on it.
Sources
- https://www.sec.gov/newsroom/speeches-statements/atkins-statement-2026-regulatory-agenda-070726
- https://www.cftc.gov/PressRoom/PressReleases/9198-26
- https://www.sec.gov/newsroom/speeches-statements/atkins-remarks-regulation-crypto-assets-031726
- https://www.lowenstein.com/news-insights/newsletters/crypto-brief-july-9-2026