After years of turf war and case-by-case enforcement, the Securities and Exchange Commission and the Commodity Futures Trading Commission released a joint interpretation this month that finally puts a framework around the question every US crypto participant has been asking since 2013: what is a security, what is a commodity, and what is something else entirely. The document, published on sec.gov and cross-posted to cftc.gov, is short, readable, and changes several things in practice.

The taxonomy at a glance

The joint interpretation separates digital assets into five categories: digital commodities, digital collectibles, digital tools, stablecoins, and digital securities. The full text is available on the [SEC's newsroom page](https://www.sec.gov/newsroom/press-releases/2026-30-sec-clarifies-application-federal-securities-laws-crypto-assets).

Digital commodities covers Bitcoin, Ether, and tokens that function primarily as units of a commodity-like network. These fall primarily under CFTC jurisdiction, with the SEC reserving anti-fraud authority.

Digital collectibles covers NFTs and tokens whose value derives from uniqueness rather than profit expectation. These are generally outside the Howey framework unless actively marketed as a share of future cash flows.

Digital tools are utility tokens used to access a live protocol. The interpretation explicitly states that a live, decentralized token used to pay for on-chain services is not automatically a security.

Stablecoins get their own category, consistent with the Payment Stablecoin framework that Congress moved forward in 2025.

Digital securities are tokenized shares of real-world companies, funds, or revenue streams. These stay under SEC jurisdiction.

Airdrops: cleaner treatment

The interpretation is most consequential for airdrops. Under the new framework, an airdrop of a live, decentralized token to existing protocol users is explicitly not a securities offering, provided the issuer is not retaining a majority stake or marketing the airdrop as an investment. That is a meaningful departure from the SEC's prior pattern of treating airdrops as unregistered offerings.

Teams that previously geofenced US users will need to reassess. An airdrop from a live, decentralized protocol to US wallets can now proceed without triggering Section 5, subject to standard anti-fraud rules.

Staking: protocol staking is not a security

The joint document draws a clear line between protocol staking (validator services on a live, decentralized network) and custodial staking-as-a-service products. Protocol staking — running a validator or delegating to one — is a technical activity that produces rewards as part of network operation and is outside the securities framework.

Custodial staking services where a firm pools customer assets, promises a yield, and handles the validator infrastructure remain securities offerings unless registered. The practical effect is that at-home stakers, pool operators like Rocket Pool, and validator services like Kiln are on safer ground; exchanges that offer branded "staking products" are not.

This is consistent with the path Ethereum itself has taken post-Pectra, with max effective balance now at 2,048 ETH and validator uptime at 99.2% in Q2 2025, as documented by [Consensys](https://consensys.io/ethereum-pectra-upgrade).

Wrapping and LRTs: explicit guidance

The interpretation addresses wrapping of non-security crypto assets. Wrapping a digital commodity (like wrapping BTC into WBTC) does not create a security by itself. The wrapped token inherits the regulatory status of the underlying asset unless the wrapping introduces new economic rights or profit expectations.

The KelpDAO category — liquid restaking tokens — sits in a greyer zone because rsETH and similar products bundle ETH staking yield with additional restaking rewards, which can look like a pooled investment contract depending on the marketing. Issuers should expect the SEC to scrutinize LRT marketing materials in the next twelve months.

Stablecoins: harmonized with the Payment Stablecoin Act

Payment stablecoins are treated as a payment instrument, not a security or commodity. The document defers to the 2025 Payment Stablecoin Act for the specific issuer and reserve requirements, but formally confirms that a compliant payment stablecoin is outside the SEC's and CFTC's primary jurisdiction. That clarification matters for state-chartered trust companies issuing USDC-style products.

Practical read-across for US investors

Three concrete changes take effect as of the interpretation's publication.

First, US users of live decentralized protocols can expect to stop being geofenced out of airdrops. Expect protocol teams to update their Terms of Service in the next quarter.

Second, retail stakers running validators on Ethereum, Solana, or any live proof-of-stake network can proceed without registering as securities issuers.

Third, investors in tokenized equities or tokenized fund shares should expect more enforcement. The "digital securities" bucket is where the SEC is signaling it will concentrate its Division of Enforcement. That includes some RWA platforms that have marketed "yield products" without filing an S-1 or equivalent exemption.

What it does not do

The document is an interpretation, not a rule. It does not preempt state-level enforcement (New York is still pursuing its gambling-law case against Coinbase and Gemini over prediction markets, as [Law.com's crypto tracker](https://www.lw.com/en/us-crypto-policy-tracker/regulatory-developments) details). It does not resolve the market structure questions that the CLARITY Act is still trying to address. And it does not retroactively immunize past conduct that would have been a violation under the prior framework.

FAQ

Q: Is BTC officially a commodity now? A: BTC has been treated as a commodity by the CFTC for years. The joint interpretation confirms that treatment and formally aligns the SEC with it.

Q: Can US exchanges now offer staking products again? A: Only if they register the product as a securities offering, or structure it as a non-custodial delegation that does not involve pooling assets or promising a yield. The blanket ban is softened but not removed.

Q: Does this help the Coinbase-New York case? A: No. State-level gambling-law questions are outside the scope of this interpretation.

Q: Is the CLARITY Act still needed after this? A: Yes. An interpretation can be changed by a future SEC Chair. The CLARITY Act would codify similar rules in statute and is still the preferred outcome for the industry.

Q: Do airdrops still have tax implications? A: Yes. The IRS treats airdrops as ordinary income at receipt. The new interpretation changes securities-law treatment, not tax treatment.

Bottom line

This is the most significant piece of crypto regulatory guidance the US has produced in a decade. It does not close every open question, but it removes the worst of the case-by-case uncertainty that has pushed builders offshore for most of the post-Gensler period. Expect product launches, airdrops, and staking integrations that have been on ice since 2022 to start thawing quickly.

*Investment disclaimer: This article is for informational purposes only and does not constitute legal, tax, or financial advice. Cryptocurrencies and crypto-related products are volatile and subject to regulation that may change; always consult a licensed advisor before making decisions.*