U.S. regulators have drawn a clearer line around crypto markets after issuing their first joint classification framework for digital assets.
On March 17, 2026, the Securities and Exchange Commission and the Commodity Futures Trading Commission released interpretive guidance that divides crypto assets into five categories. Additionally, law firm Jones Day published a detailed breakdown explaining how the framework works. The guidance marks the first formal effort at the Commission level to define which assets fall under securities law.
The framework groups assets into digital commodities, digital collectibles, digital tools, stablecoins and digital securities. However, only digital securities automatically fall under federal securities rules. Everything else depends on structure, marketing and any promises made to buyers.
That distinction matters immediately for major tokens. Bitcoin, Ethereum, Solana and Dogecoin all qualify as digital commodities under the framework. In addition, regulators estimate that roughly 70 per cent of current crypto assets fall into that same category. Consequently, oversight for most of the market shifts primarily toward the CFTC rather than the SEC.
That shift could reduce regulatory overlap. Previously, both agencies sometimes pursued the same cases, which created confusion. Now, the clearer boundary should allow the CFTC to focus more directly on fraud cases tied to commodities. Meanwhile, meme coins and other volatile assets may face faster enforcement actions under that approach.
At the centre of the framework sits the long-standing Howey test. This legal standard asks whether buyers invest money expecting profits from someone else’s efforts. Additionally, regulators use it to determine whether an asset becomes a security at any point in its lifecycle.
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The framework clarifies everyday crypto activities
The guidance introduces what it calls an “on-ramp” and “off-ramp” for securities status. An asset can enter securities territory if issuers make promises that lead buyers to expect profits. However, that same asset can later exit that category. This happens once those promises are fulfilled or clearly fail, removing any reasonable expectation of profit.
This approach builds on earlier regulatory thinking. In 2018, an SEC official suggested that decentralization could reduce the need for securities rules. Similarly, the new guidance reflects that view by focusing on whether buyers rely on a central group.
The framework also clarifies several everyday crypto activities. Mining involves using computing power to validate transactions and earn rewards. Additionally, staking lets users lock tokens to help secure networks and receive returns. Wrapping refers to converting one crypto asset into a version usable on another blockchain.
Regulators state that these activities do not constitute securities offerings in most cases. Consequently, developers and users gain more certainty around common practices that previously sat in a legal gray area. Furthermore, certain airdrops, which distribute free tokens to users, also avoid securities classification under specific conditions.
The guidance carries implications for enforcement as well. Federal prosecutors are not bound by the framework. However, Jones Day expects a shift toward wire fraud and commodities fraud cases. These charges require less effort than proving an asset qualifies as a security.
Congress continues to debate broader crypto legislation. Bills such as the CLARITY Act aim to establish a comprehensive market structure. Meanwhile, the new framework could become the primary reference point if lawmakers fail to act.
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