Question 1

What are the five SEC/CFTC token categories?

Accepted Answer

The March 2026 SEC/CFTC joint interpretive release established five categories: Digital Securities (tokens with economic rights, SEC jurisdiction), Digital Commodities (blockchain network tokens like BTC, ETH, SOL—CFTC jurisdiction), Stablecoins (pegged tokens under the GENIUS Act PPSI framework), Digital Tools (utility tokens, generally outside SEC/CFTC jurisdiction), and Digital Collectibles (NFTs and cultural tokens, generally not securities).

Question 2

Which tokens are classified as digital commodities?

Accepted Answer

The release gives sixteen examples of digital commodities: APT, AVAX, BTC, BCH, ADA, LINK, DOGE, ETH, HBAR, LTC, DOT, SHIB, SOL, XLM, XTZ, and XRP. The list is illustrative, not exhaustive — a footnote explains those sixteen were chosen because each underlies a CFTC-regulated futures contract, and names ALGO and LBC as digital commodities that do not. Classification turns on the asset's characteristics, so absence from the list means nothing either way, and a listed asset can still be sold as part of an investment contract.

Question 3

Does the token taxonomy replace the Howey test?

Accepted Answer

No. The taxonomy supplements but does not replace the investment contract analysis under SEC v. W.J. Howey Co. Tokens can still be offered as securities through investment contracts even if the underlying token is classified as a digital commodity.

Question 4

How are stablecoins classified under the token taxonomy?

Accepted Answer

Stablecoins are governed by the GENIUS Act's Permitted Payment Stablecoin Issuer (PPSI) framework—separate from SEC and CFTC jurisdiction. Classification depends on reserve composition (qualifying reserves include USD and Treasury bills), issuer licensing status, yield features, and redemption rights. Algorithmic stablecoins may not qualify under the GENIUS Act framework.

Question 5

What makes a token a digital security vs. a digital commodity?

Accepted Answer

Tokens with economic rights (dividends, profit shares, revenue distribution, or claims on assets) are likely digital securities under SEC jurisdiction. Tokens that derive value from blockchain network participation (native tokens, gas tokens) and meet the functionality test without outstanding issuer promises are likely digital commodities under CFTC jurisdiction. The distinction depends on economic substance, not labels.

Token Classification Issue Spotter

Economic Rights

Pegged to a Reference Asset

Blockchain Network Value

Practical Function

Artistic or Cultural Value

About the SEC/CFTC Token Taxonomy

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