Key Takeaways:
The SEC's Interpretive Release 33-11412 classifies Bitcoin, Ethereum, Solana, and 15 other crypto assets as digital commodities, not securities.
Digital tools such as memberships, credentials, and identity badges are also excluded from securities classification under the new framework.
The CFTC issued its first non-custodial derivatives no-action relief to Phantom wallet the same week, while Senator Lummis predicted the CLARITY Act will reach a Senate Banking Committee markup in April.
The Securities and Exchange Commission published Interpretive Release 33-11412, creating a formal classification framework that separates crypto assets into five categories and removes the largest tokens from securities enforcement.
Digital commodities, defined as crypto assets intrinsically linked to the programmatic operation of a functional system, are explicitly not securities. The SEC named 17 tokens in this category: Bitcoin, Ethereum, Solana, Cardano, Chainlink, Dogecoin, Shiba Inu, Polkadot, Avalanche, Aptos, Stellar, Litecoin, Bitcoin Cash, Hedera, Tezos, XRP, and others. Digital collectibles (artwork, in-game items, music), digital tools (memberships, tickets, credentials, identity badges), and GENIUS Act stablecoins also fall outside securities law. Only "digital securities," meaning tokenized versions of traditional financial instruments, remain under SEC jurisdiction.
The same week, the CFTC granted Phantom wallet its first non-custodial derivatives no-action relief. Phantom can now connect users directly to regulated derivatives and event contracts without registering as an introducing broker. The agency agreed that Phantom's non-custodial model, where users submit orders directly and the wallet never holds funds, does not fit existing broker registration requirements. That precedent applies to every non-custodial platform watching from the sidelines.
CLARITY Act Headed for April Markup
Senator Cynthia Lummis told the DC Blockchain Summit on March 18 that the Senate Banking Committee will mark up the CLARITY Act after Easter recess, likely in late April. Lummis said negotiators resolved outstanding questions on both stablecoin yield and decentralized finance. Senate Banking Committee Chairman Tim Scott told the same summit he expects a first proposal on stablecoin yield language by end of week. Lummis predicted the full Senate could pass the bill by year-end.
The combined effect of the SEC classification, the CFTC relief, and the CLARITY Act timeline is the clearest regulatory picture crypto has had since the GENIUS Act passed in July 2025. Worth watching closely.
People Also Ask
Q: Which cryptocurrencies did the SEC classify as digital commodities? A: The SEC named Bitcoin, Ethereum, Solana, Cardano, Chainlink, Dogecoin, Shiba Inu, Polkadot, Avalanche, Aptos, Stellar, Litecoin, Bitcoin Cash, Hedera, Tezos, and XRP as digital commodities.
Q: What is the difference between a digital commodity and a digital security? A: Digital commodities derive value from the programmatic operation of a functional crypto system and are not securities. Digital securities are tokenized traditional financial instruments like stocks or bonds and remain under SEC jurisdiction.
Q: What is the CLARITY Act? A: The CLARITY Act is a crypto market structure bill that defines regulatory boundaries between the SEC and CFTC, with a Senate Banking Committee markup expected in April 2026.
Q: What did the CFTC grant Phantom wallet? A: The CFTC issued its first non-custodial no-action relief, allowing Phantom to connect users to regulated derivatives without registering as an introducing broker because the wallet never holds user funds.