SEC And CFTC Clarify When Digital Assets Are—and Are Not—Securities

Summary

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) issued a joint interpretation on March 17, 2026, outlining a coordinated federal framework for assessing when digital assets fall within the definition of a security. The release clarifies how the Howey test applies to digital‑asset transactions, introduces a five‑category token taxonomy, and describes how the agencies intend to coordinate oversight of crypto‑asset markets.

The Upshot

• The SEC and CFTC have, for the first time, articulated a coordinated framework for evaluating digital assets, including when a token is treated as a security, when it is treated as a commodity, and how each agency’s jurisdiction may apply.