US financial regulator issues long-awaited cryptocurrency guidance

The US Securities and Exchange Commission (SEC), along with the Commodity Futures Trading Commission, issued guidance clarifying the classification of cryptocurrencies, categorizing them into digital commodities, collectibles, tools, stablecoins, and securities. Federal securities laws will only apply to digital securities. The SEC stated that even non-security crypto assets could be subject to securities laws if marketed as investments with expected profits. SEC Chair Paul Atkins outlined plans to overhaul capital market regulations for cryptocurrencies and proposed a "safe harbor" for crypto companies, potentially exempting them from certain regulations to facilitate fundraising and token sales. Atkins anticipates releasing a proposal on crypto safe harbors for public comment soon. The crypto sector has long argued for clearer regulations distinguishing between securities, commodities, and other categories like stablecoins.

Explore how the topics in this article connect to other news stories

Discover articles with similar content using semantic similarity analysis.