The U.S. Securities and Exchange Commission (SEC) has delivered a major decision for the crypto industry, clarifying that “most crypto assets are not securities.” The new guidance also excludes activities like staking, airdrops, and mining from the definition of securities, offering significant relief to the sector.
SEC Chair Paul Atkins said the move is aimed at establishing “clear and precise rules,” helping investors and entrepreneurs overcome years of regulatory uncertainty.
What will not be considered securities
According to the new framework, mining, staking, and airdrops do not fall under securities classification. This means most tokens associated with these activities will not be subject to strict securities laws.
The SEC also emphasized that digital assets will not be judged by a single standard. Instead, regulators will assess whether an asset’s value is driven by independent network operations or by the managerial efforts of a company or promoter.
FutureCrime Summit 2026 Calls for Speakers From Government, Industry and Academia
Crypto assets divided into five categories
Under the guidance, digital assets are classified into five groups:
- Digital commodities (such as Bitcoin and Ethereum)
- Digital collectibles (NFTs, meme coins)
- Digital tools (memberships, tickets, digital identity)
- Stablecoins
- Digital securities
Among these, only digital securities fall squarely under direct SEC regulation.
Support from CFTC
Following the announcement, the Commodity Futures Trading Commission (CFTC) stated that it would apply its laws in alignment with the SEC’s interpretation, marking a significant step toward regulatory coordination.
Shift away from the Howey Test
Previously, crypto assets were often assessed using the Howey Test. However, the SEC indicated that relying solely on this framework is insufficient.
Atkins acknowledged that this reliance contributed to prolonged uncertainty in the industry.
‘Safe harbor’ proposal for startups
The SEC has also hinted at upcoming “safe harbor” rules for certain crypto projects. These may include:
- Relief for startups during their first four years
- Experimental projects up to $5 million (approx. ₹41 crore)
- Fundraising up to $75 million (approx. ₹620 crore)
These measures are expected to encourage innovation in the crypto space.
What it means for the industry
The decision comes at a time when comprehensive crypto legislation is still pending. The SEC’s move indicates that regulators are moving ahead with clarity rather than waiting for new laws to be enacted.
Experts believe this will boost investor confidence and reduce regulatory risks for crypto startups. However, the SEC has clarified that if a token is marketed as an investment contract, it may still be treated as a security under certain conditions.
Overall, the guidance is being seen as a turning point for the crypto industry, potentially ending years of regulatory ambiguity and paving the way for more structured growth.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
