A Place for Every Token and Every Token in its Place: The SEC “Airdrops” its New Crypto Taxonomy

By: Thoreau A. Bartmann, Lance C. Dial, and Sarah V. Riddell

On 17 March 2026, the SEC and CFTC issued a joint interpretive release establishing a formal taxonomy for crypto assets and when such assets are securities under federal law, which is a critical analytical point in determining if regulations apply. While the release is an interpretation of existing laws, and not a final rulemaking, it is a major step toward a durable crypto regulatory regime.  

The Five-Category Framework

The release classifies crypto assets into five categories, with implications as to whether the asset is (or is not) a “security”. In sum, the following categories of digital assets are generally not “securities”:

• Digital commodities—Assets whose value is derived from their programmatic network operation and supply/demand rather than managerial efforts are not securities. Notably the release specifically names a variety of such crypto assets, including Bitcoin, Ether, Solana, and XRP;
• Digital collectibles (NFTs, meme coins, fan tokens) (absent fractionalization);
• Digital tools (credentials, memberships, soul-bound tokens); and
• Payment Stablecoins conforming to the GENIUS Act or covered under past staff statements.  

On the other hand, the release notes that digital securities (i.e., tokenized versions of traditional securities) are “securities”, regardless of their onchain format, or whether they are “wrapped” in a digital asset. Notwithstanding this classification, any of these assets could be deemed to be a security if sold as part of an investment contract. The critical nuance here, however, is that the “security” status is not permanent with respect to the crypto asset: if the issuer fulfills (or abandons) its promises, the asset may lose its investment contract status, and become freely tradeable on secondary exchanges.

The interpretation also addresses:

Staking and Mining

The interpretation also confirmed previous staff statements that certain mining and staking activities are not “securities”, even if offered through pools. 

Airdrops

Unless announced in advance with terms and conditions, airdrops are generally not securities.

Key Takeaways

This interpretation represents a significant development providing clear guidance from relevant regulators addressing chronic legal ambiguities associated with crypto assets. Although significant questions remain, this concrete first step indicates that the SEC and the CFTC will be looking for ways to cement the regulatory status of crypto assets in firmer regulatory ground.