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SEC Pivots On Crypto, Declaring Most Assets Are Not Securities
The SEC has formally classified the majority of cryptocurrency assets as digital commodities. The designation was unveiled on Tuesday as part of a new, comprehensive crypto asset taxonomy under 'Project Crypto', an initiative led by SEC Chair Paul Atkins to move the agency toward structural clarity.
The new framework categorizes digital assets into four distinct groups: digital commodities, digital collectibles, digital tools, and tokenized securities.
Under this interpretation, the SEC concluded that Bitcoin (CRYPTO: $BTC), alongside Ethereum (CRYPTO: $ETH), Solana (CRYPTO: $SOL), XRP, Cardano (CRYPTO: $ADA), and Avalanche (CRYPTO: $AVAX), among others, derive value from a functional, decentralized protocol rather than a centralized issuer.
"After more than a decade of uncertainty, this interpretation will provide market participants with a clear understanding of how the Commission treats crypto assets under federal securities laws," said SEC Chairman Paul S. Atkins. "It also acknowledges what the former administration refused to recognize – that most crypto assets are not themselves securities."
The SEC noted that the taxonomy is dynamic, and assets currently categorized as securities, specifically tokenized forms of traditional equity or debt, may be re-evaluated as their respective ecosystems evolve.
"Today’s joint agency action reflects a shared commitment to developing workable, harmonized regulations," added CFTC Chairman Michael S. Selig.
The SEC’s guidance comes as U.S. senators move to advance the Clarity Act. The bill, which passed the House of Representatives last year, has stalled in the Senate amid disagreements over stablecoin interest payments.
This article has been published in cryptoprowl.com via Yahoo News.
SEC Pivots On Crypto, Declaring Most Assets Are Not Securities
The SEC has formally classified the majority of cryptocurrency assets as digital commodities. The designa...
finance.yahoo.com
