SEC and CFTC define XRP, Solana, Cardano and DOGE as digital commodities
- SEC and CFTC classify XRP, SOL, ADA, DOGE, BTC and ETH as digital commodities.
- The guidelines make it clear: Not every crypto asset is automatically a security.
The US Securities and Exchange Commission (SEC) together with the CFTC have published a new guideline that defines the classification of crypto assets under US securities law. XRP, Solana, Cardano and Dogecoin are specifically listed as “digital commodities” in the document, along with Bitcoin, Ether and several other tokens. SEC CEO Paul Atkins explained:
“After more than a decade of uncertainty, this interpretation will give market participants a clear understanding of how the Commission will treat crypto assets under the federal securities laws. That is exactly what regulators are supposed to do: draw clear lines in clear terms. It also recognizes what the previous administration failed to acknowledge – that most crypto assets are not securities themselves.”
Atkins further explained that the guidance also takes into account the fact that “investment contracts can end” and can serve as a bridge. At the same time, the US Congress continues to work on one comprehensive market structure legislation (also known as the Clarity Act).
XRP, Solana, Cardano and DOGE are digital commodities
At its core, the SEC introduces a five-part taxonomy: digital commodities, digital collectibles, digital tools, stablecoins and digital securities.
As of now, digital commodities are crypto assets whose value is derived from the programmatic functioning of a functional cryptosystem as well as from supply and demand. They must not be based on the expectation of profits from the management services of third parties. Notably, the SEC names Aptos, Avalanche, Bitcoin, Bitcoin Cash, Cardano, Chainlink, Dogecoin, Ether, Hedera, Litecoin, Polkadot, Shiba Inu, Solana, Stellar, Tezos and XRP.
The guideline also emphasizes that although a “non-security crypto asset” can be offered or sold as part of an investment contract, this does not automatically make it a security itself. The SEC also states that such a link does not necessarily have to remain permanent: If buyers can no longer reasonably expect that the issuer’s essential management services are linked to the asset, the asset will no longer be subject to securities law.
According to the press release, the interpretation also covers airdrops, protocol mining, protocol staking and the wrapping of non-security assets. The CFTC has agreed to the interpretation and stated that it will apply the Commodity Exchange Act consistent with this SEC interpretation. CFTC chief Michael Selig said:
“For far too long, American developers, innovators and entrepreneurs have waited for clear guidance on the status of crypto assets under securities and commodities law. With today’s interpretation, that wait is over. Today’s joint action by both agencies demonstrates a shared commitment to developing workable and harmonized rules for the new financial frontier.”
There was immediate approval from the crypto industry. Ripple chief legal officer Stuart Alderoty wrote on X:
“We always knew that XRP was not a security – and now the SEC has made it clear what it is: a digital commodity. Thanks to the Crypto Task Force for finally providing the clarity that markets, investors and innovators have long deserved.”
The official Solana account also highlighted the classification and explained:
“The SEC has officially included SOL as a digital commodity in its new crypto asset taxonomy, along with BTC, ETH and 14 other assets. SOL is not a security.”
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