SEC Defines Crypto Assets, Categorizes Them into Five Types

The SEC has issued an interpretation clarifying the application of federal securities laws to crypto assets, classifying them into five categories: digital commodities, digital collectibles, digital tools, stablecoins, and securities. The interpretation deems certain assets such as Bitcoin, Ethereum, and Dogecoin as non-securities, while others like CryptoPunks and Fan Tokens are classified as collectibles. Assets that fail the Howey test are considered securities, but can become non-securities if the original investment contract is fulfilled or the issuer fails to fulfill their promises.