The US Securities and Exchange Commission has cleared up longstanding ambiguity about how crypto assets should be treated. 

The SEC issued an interpretation on Tuesday clarifying how federal securities laws apply to certain crypto assets and transactions involving cryptocurrencies.

This is a “major step in the Commission’s efforts to provide greater clarity regarding the treatment of crypto assets,” it stated. The guidance also “complements Congressional endeavors to codify a comprehensive market structure framework into statute.”

The Commodity Futures Trading Commission (CFTC) also joined the interpretation, confirming that it will apply the Commodity Exchange Act to crypto assets.

SEC: Cryptos Are Not Securities

The interpretation establishes a token taxonomy covering five categories: digital commodities, digital collectibles, digital tools, stablecoins, and digital securities.

The key takeaway is that most crypto assets are not classified as securities, which is the opposite of the previous Administration’s stance on them. SEC Chairman Paul Atkins stated:

“It also acknowledges what the former administration refused to recognize – that most crypto assets are not themselves securities.”

“After more than a decade of uncertainty, this interpretation will provide market participants with a clear understanding of how the Commission treats crypto assets under federal securities laws,” he added.

After more than a decade of uncertainty, this interpretation will provide market participants with a clear understanding of how the SEC treats crypto assets under federal securities laws.

This is what regulatory agencies are supposed to do: draw clear lines in clear terms. https://t.co/wij5cA7N2i

— Paul Atkins (@SECPaulSAtkins) March 17, 2026

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“For far too long, American builders, innovators, and entrepreneurs have awaited clear guidance on the status of crypto assets under the federal securities and commodity laws,” said CFTC Chairman Michael Selig.

“With today’s interpretation, the wait is over. Chairman Atkins and I are committed to fostering a regulatory environment that allows the crypto industry to flourish in the United States with clear and rational rules of the road.”

It also provides guidance on common crypto activities that have long existed in a legal gray zone, including airdrops, mining, staking, and asset wrapping.

Both Atkins and Selig framed this as a “bridge for entrepreneurs and investors” while Congress works on broader bipartisan market structure legislation.

“This is the biggest move toward legitimacy I’ve seen in all my time in crypto. Maybe bigger than the genius act since it covers all crypto assets,” commented crypto investor Ryan Sean Adams.

No Crypto Market Reaction

It seems that positive regulatory developments fail to move markets these days, as spot markets actually retreated by 1% over the past 24 hours.

Bitcoin tapped $74,800 three times over the past 12 hours or so but failed to break through, falling back to $74,350 at the time of writing.

Ether prices were tightly rangebound over the past 24 hours, trading at $2,333 on Wednesday morning in Asia.

The altcoins were a mixed bag, with gains for Tron and Hyperliquid, and losses for XRP, Stellar, and Canton.

US Securities and Exchange Commission Chair Paul Atkins has proposed a “safe harbor” framework aimed at easing regulatory pressure on crypto firms while keeping them within the federal oversight structure.

Speaking at the DC Blockchain Summit in Washington, Atkins said, “such a safe harbor would provide crypto innovators bespoke pathways to raise capital in the US, while providing appropriate investor protections.”

Calls for similar safe harbor measures have previously been put forward by SEC commissioner Hester Peirce, who has long advocated for a tailored approach that gives crypto projects time to develop before being subject to full securities regulation.

Atkins proposed a “fit-for-purpose startup exemption” targeting early-stage projects, which would allow developers to raise limited capital without full securities registration before they are subject to standard compliance requirements.

He said the provision would give projects a “regulatory runway” to develop their networks before facing the full weight of compliance requirements.

To qualify, firms would need to provide “principles-based disclosures” through public channels, a model that aligns with the industry’s practice of publishing white papers and technical updates.

His proposal also outlines a “fundraising exemption” for more established projects.

This way, issuers would be able to raise up to $75 million within a 12-month period, while meeting more structured disclosure requirements, including financial documentation.

Further, Atkins introduced an “investment contract safe harbor,” aimed at addressing when a token should no longer be treated as a security.

“This safe harbor could apply once the issuer has completed or otherwise permanently ceased all essential managerial efforts that the issuer represented or promised that it would engage in under the investment contract,” Atkins said.

The provision looks to bring more certainty to how tokens are assessed as projects move toward decentralised structures.

According to Atkins, the SEC will soon put forward draft rules for public consultation, though he added that “only Congress can ensure that regulation in this area is future-proofed through comprehensive market structure legislation.”

The SEC chair’s comments came as the SEC and the Commodity Futures Trading Commission issued a joint interpretation outlining how crypto assets should be classified under federal law.

Atkins has clarified that “only one crypto asset class remains subject to the securities laws,” identifying it as “traditional securities that are tokenized.”

As covered by crypto.news, the SEC is also seeking public feedback on proposed changes to Rule 15c2-11, which would limit broker-dealer reporting requirements in over-the-counter markets to equity securities, easing concerns that the rule could extend to crypto assets.

The number of whale wallets holding more than one million of US President Donald Trump’s memecoin has surged to a five-month high after announcing a luncheon at his Florida home for top holders last week. 

There are now 83 wallets holding more than 1 million TRUMP (TRUMP) (equating to $3.7 million), making it the highest showing for the memecoin since Oct. 8 last year, Santiment said in an X post on Monday.

The luncheon with Trump is set for April 25 at his Mar-a-Lago residence in Florida, according to the Trump team. The top 297 token holders are invited, with the top 29 eligible for a private reception with the president, subject to passing background checks. 

In the days following the luncheon announcement, TRUMP rose by more than 50% to hit a peak of $4.35. As of Wednesday, TRUMP is up 27% over the last seven days and trading at $3.71.

Dominick John, an analyst with Zeus Research, told Cointelegraph the Mar-a-Lago event, which offers access to the US president, is acting as a powerful catalyst for accumulation. 

Crypto data analytics platform CoinCarp lists 642,882 TRUMP holders, with over 91% of the supply concentrated among the top 10 and over 97% among the top 100. At the first event for TRUMP token holders last year, Tron founder Justin Sun was the largest tokenholder. 

John also points to other guests, such as Tether CEO Paolo Ardoino, who is scheduled to speak and attend the luncheon, as potential drivers of user interest.

“Momentum is driven by narrative-led flows and whale positioning,” he said.

“The presence of Paolo Ardoino from Tether at this event hints at potential ecosystem announcements, providing a real catalyst. His appearance could transform the gala into a progress showcase for the TRUMP token,” John added.

TRUMP spiked in lead up to last year’s gala

Trump held his first “crypto gala” dinner last year in May 2025, a few months after his Jan. 20 inauguration as US president. 

It was limited to the top 220 TRUMP token holders and included crypto executives such as Hyperithm CEO Sangrok Oh, as well as anonymous and pseudonymous crypto traders like Cryptoo Bear, and sports stars like NBA champion Lamar Odom.

The event’s announcement a month earlier, on April 23, saw the token peak at $15.59 on April 25. However, the token began to gradually fall from that point. It fell to $14.51 on May 22, the day of the dinner, then gradually dropped to $12.46 a week later and $8.90 a month later.

John said it’s likely the coin would follow a similar trajectory after the upcoming luncheon concludes in April.

“Historically, Trump events show an announcement-driven hype phase followed by a gradual post-event downtrend. This event will follow a similar trajectory, unless new developments are unveiled around this event.”

US lawmakers look to limit memecoin profits by politicians

US senators and former staffers protested outside the event last year, while Democratic lawmakers have also introduced bills to limit political influence and profits from memecoins.

Related: SEC will consider most crypto assets not securities under federal law

The Modern Emoluments and Malfeasance Enforcement (MEME) Act was introduced in February 2025 to prevent federal officials from using their positions to profit from memecoins. It’s currently in the Committee stage and hasn’t progressed to a vote in either the House or Senate.

Meanwhile, the Stop Presidential Profiteering from Digital Assets Act aims to make it illegal for federal officials to issue, promote, or sell digital assets, such as memecoins. The similar Curbing Officials’ Income and Nondisclosure (COIN) Act has also failed to advance since its introduction last year. 

Magazine: Clarity Act risks repeat of Europe’s mistakes, crypto lawyer warns