Could a reset for US crypto rules finally give payments firms the clarity needed to move from caution to adoption?
The US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have issued joint guidance on how federal securities laws apply to crypto assets.
Published on 17 March, the interpretive release is designed to give companies, exchanges and investors much needed clarity after years of regulatory grey areas around crypto.
“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 Chair Paul Atkins.
The action also highlights a new era in US regulation where the two agencies, which have historically taken differing approaches to crypto oversight, have become much closer.
CFTC Chair Michael Selig said the guidance supports a “regulatory environment that allows the crypto industry to flourish in the US with clear and rational rules of the road.”
What is a security?
One of the biggest challenges for the crypto industry in recent years has been determining which assets fall under US securities laws, often relying on court cases and enforcement actions.
At the heart of this has been the “Howey test”, used to assess whether an asset involves an investment contract. Its application to crypto has been widely debated, leaving companies uncertain about how tokens would be classified.
The new guidance attempts to resolve this by introducing a five-part classification system, which can be found in the 67-page document published by the agencies. The framework provides a clearer distinction between assets which derive value from decentralised networks and those tied to traditional financial structures.
Digital commodities, including major tokens such as Bitcoin, Ethereum and Solana, are defined as assets whose value comes from how the network operates and market demand instead of the efforts of a central party. These are not considered securities.
Digital collectibles, such as NFTs and in-game items, along with digital tools like tickets or credentials, are also classified as non-securities because of their functional or cultural use rather than investment characteristics.
Payment stablecoins issued under the proposed GENIUS Act are largely treated the same way. Only “digital securities”, tokenised versions of traditional financial instruments, fall clearly within securities rules.
The SEC and CFTC believe by explicitly stating several major categories of crypto assets are not securities, the guidance provides a clearer foundation for how these assets can be traded, integrated into financial products and used within payment systems.
The release also outlines how some tokens may move out of securities classification over time if issuers fulfil their commitments, offering a clearer pathway for projects to operate without ongoing regulatory uncertainty.
What it means for crypto payments
In addition to classification, the guidance narrows how regulators apply the Howey test, focusing more directly on the role of issuers.
Under the new interpretation, only explicit promises made by the issuer, such as commitments to deliver returns or develop a project, are relevant when determining whether an asset is a security. This means broader market speculation or third-party commentary does not factor into the assessment.
The agencies also stated common crypto activities, including protocol mining, staking, wrapping of tokens and certain airdrops, do not in themselves constitute securities transactions. However, these activities must still be carefully structured, particularly where intermediaries exercise control or discretion.
A more predictable operating environment is likely to emerge for payments firms, fintechs and financial institutions. Clearer definitions of non-security assets could support the development of crypto-based payment products, wallet services and settlement infrastructure without the same level of regulatory ambiguity seen in recent years.
Firms may also benefit from greater certainty when assessing exposure to digital assets, particularly as regulators begin to show a more coordinated approach between the SEC and CFTC.
Industry reaction has been extremely positive, with Mike Katz, Partner at Manatt Legal, describing the release as “the most consequential piece of US crypto regulatory guidance ever produced.”
In his latest Substack post, he highlighted its role in giving companies a clearer framework for structuring products and managing compliance risk.
There has also been support from within the crypto sector. Stuart Alderoty, Chief Legal Officer at Ripple, said in a post on X that “we always knew XRP wasn’t a security — and now the SEC has made clear what it is: a digital commodity,” adding the move delivers the clarity “markets, investors, and innovators have long deserved.”
