No single agency owns crypto as a whole, and no token falls into one agency’s category by its name. The Securities and Exchange Commission (SEC) applies federal securities laws to securities and to offers, sales, and conduct involving them. The Commodity Futures Trading Commission (CFTC) administers the Commodity Exchange Act (CEA), and its guidance says some crypto assets that are not securities may still meet the CEA definition of “commodity.” Whether securities law applies may depend on a transaction or investment contract built around an asset, not only on the asset itself.
The current framework is a joint SEC interpretation with CFTC guidance, effective March 23, 2026. The sections below explain what it says, how the two agencies’ roles differ, and how to apply the same logic to a product you are considering.
What changed in 2026
On March 17, 2026, the SEC issued an interpretation of how federal securities laws apply to certain crypto assets and transactions. The CFTC joined and issued CEA guidance consistent with it. The joint document became effective on March 23, 2026.
It sorts crypto assets into five categories:
- Digital commodities
- Digital collectibles
- Digital tools
- Stablecoins
- Digital securities
A category describes what kind of asset something appears to be. It does not by itself settle which agency’s law governs a particular sale, platform, or product. Two limits matter more than the labels. First, the SEC states that the interpretation does not supersede or replace the Howey test, the court-developed framework for deciding whether an arrangement is an investment contract, and that test remains binding precedent. The interpretation sets out the Commission’s views on how parts of that test apply to crypto assets. Second, it is an interpretation, not a statute. It does not automatically classify every token or transaction.
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1Clear out junk files and repair common Windows errors2Scan for outdated or missing drivers - takes under a minute3Repair Windows errors before they cause bigger problemsHow the two agencies’ roles differ
The agencies administer different statutes, so each starts from a different question.
| Question | SEC | CFTC |
|---|---|---|
| Statute administered | Federal securities laws | Commodity Exchange Act (CEA) |
| Core question for a crypto asset | Is the asset itself a security, or does a transaction or investment contract involving it bring it within securities law? | Does the asset meet the CEA definition of “commodity”? |
| Status of the 2026 document | Interpretation of federal securities laws, issued March 17, 2026, effective March 23, 2026; does not replace the Howey test | Guidance dated March 17, 2026, issued jointly with the SEC interpretation and consistent with it |
Why a token’s name doesn’t decide it
A 2019 joint statement from the leaders of the CFTC, the Financial Crimes Enforcement Network (FinCEN), and the SEC still captures the logic the 2026 framework builds on:
“As such, regardless of the label or terminology that market participants may use, or the level or type of technology employed, it is the facts and circumstances underlying an asset, activity or service, including its economic reality and use (whether intended or organically developed or repurposed), that determines the general categorization of an asset, the specific regulatory treatment of the activity involving the asset, and whether the persons involved are ‘financial institutions’ for purposes of the BSA.”
Source: joint statement by the leaders of the Commodity Futures Trading Commission, Financial Crimes Enforcement Network, and Securities and Exchange Commission, October 11, 2019.
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The statement concerns categorization and treatment in an interagency context. It does not by itself decide any particular securities-law case. Its final clause refers to the Bank Secrecy Act, which concerns anti-money-laundering obligations and sits outside the securities and commodities question this article covers.
Two practical points follow. A project’s own branding does not settle the analysis, and in ordinary crypto-market language an “exchange” may not be an “exchange” under federal securities laws. Also, the statement counts repurposed uses, so an asset’s role can be judged by how it is actually used, not only by how it was announced.
How the SEC approaches a crypto asset
Separating the asset from the arrangement
An asset that is not itself a security can still be offered or sold as part of an investment contract. The 2026 interpretation applies the Howey framework to the contract, transaction, or scheme surrounding the asset, and it addresses how an associated investment contract may end. Howey asks whether buyers put money into a common enterprise with an expectation of profits from the efforts of others.
Consider a token sold with promises that the seller will build the network and manage it for buyers’ gains. The token may not be a security in the abstract, but the sale can still be evaluated under the Howey test. That is a question about the sale, separate from what the token is.
Activities the interpretation also covers
- Protocol mining
- Staking
- Wrapping
- Airdrops
- Investment contracts associated with non-security assets
The interpretation addresses each of these. The SEC’s own text is the place to check how each is treated, since the outcomes depend on the facts described there.
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Commodity status is a separate question
The CFTC’s guidance says some non-security crypto assets may meet the CEA definition of “commodity,” which places them within the CFTC’s statutory reach. That does not mean the CFTC has exclusive oversight of every spot transaction in that asset. Derivatives, intermediaries, and the conduct around an offering can raise separate questions.
Spot products on registered exchanges
In September 2025, SEC and CFTC staff said current law did not prohibit SEC- or CFTC-registered exchanges from facilitating certain spot commodity products. This is a limited staff view covering certain products and registered exchanges. It is not a blanket statement about all spot crypto trading, and it does not settle where any particular token may trade.
Applying the framework to a product you’re considering
Because no token can be declared SEC-only or CFTC-only in advance, compare products using the same five questions:
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- What does the asset do? Look at its characteristics, use, and function as it is actually used.
- What did the sellers promise? Note whether the issuer or promoter made representations, or is expected to carry out managerial efforts that drive the asset’s value.
- How was it sold, and what did buyers expect? Under Howey, the offer structure and purchasers’ expectations matter.
- What kind of product is it? Determine whether the activity involves a spot commodity, a derivative, a security, or a securities intermediary.
- Where does it trade, and who runs the platform? Check the venue’s role and whether the firm is registered with the SEC or CFTC for the activity it performs.
Coordination does not merge the agencies
In March 2026, the agencies announced a memorandum of understanding (MOU) and a Joint Harmonization Initiative for coordinated oversight. The work includes joint product definitions and a fit-for-purpose framework for crypto assets. The SEC and CFTC remain distinct agencies administering separate statutes, so coordination does not transfer one agency’s jurisdiction to the other.
Quick Recap
Limits of this answer
- This is a general explainer. It does not determine whether any named token, issuer, exchange, or investor falls under one agency or the other, and no list of tokens can be declared SEC-free or CFTC-only in advance.
- The 2026 document is an SEC interpretation with CFTC guidance. It is not statutory text, a court ruling, or a rulebook covering every product, and the surrounding offer, sale, derivative, or intermediary activity can raise questions even when an asset is treated as a non-security.
- Rules in this area change quickly. Before acting on a specific asset, check each agency’s current published guidance and any later rules or legislation, and get advice based on the particular facts.
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