What is the impact of the SEC's issuance of interpretive guidance promoting a "Token Classification Framework" on the cryptocurrency industry?

Author: Fenri, Crypto City

SEC Submits Explanatory Guidance to Clarify Legal Status of Crypto Assets
The U.S. Securities and Exchange Commission (SEC) recently submitted a new regulatory interpretive document to the White House Office of Management and Budget (OIRA), titled “Commission Interpretation on the Application of Federal Securities Laws to Certain Types of Crypto Assets and Related Transactions.” This document aims to clarify how federal securities laws apply to different types of crypto assets and trading scenarios.

Image source: SEC | SEC recently submitted a new regulatory interpretive document to the White House Office of Management and Budget (OIRA)

This guidance is currently under inter-agency review and is classified as a regulatory interpretive document. It differs from formal rulemaking. Interpretive documents avoid public comment periods or lengthy legislative procedures. Issued at the commission level, such interpretations carry significant policy guidance authority.
Market observers note that the primary purpose of this document is to establish a “Token Taxonomy.” This framework will systematically categorize various crypto assets and determine which should be considered securities subject to SEC jurisdiction, and which fall under other regulatory frameworks.

Token Taxonomy as the Core of Regulation, Impacting Industry Operations
SEC Chairman Paul Atkins has repeatedly emphasized that establishing a clear token classification framework is key to resolving regulatory disputes in the crypto industry. Through classification, regulators can better define the legal nature of different tokens. For example, determining which tokens are investment contracts, which are utility tokens, or whether certain assets fall into other digital asset categories.

Image source: CoinMarketCap | SEC Chairman Paul Atkins

Once the classification framework is established, regulatory requirements for crypto companies regarding registration, disclosure, product issuance, and investor protection will become clearer. The operational models and compliance strategies of exchanges, issuers, and investment platforms will be directly affected.
Analysis indicates that while SEC’s interpretive guidance does not change existing laws, it will serve as an important basis for enforcement. Compared to informal statements issued by agency staff in the past, interpretations issued at the commission level are generally regarded as more authoritative and are more likely to be cited in enforcement and judicial proceedings.

Legislative Stagnation in Market Structure, Regulatory Agencies Accelerate Action
The timing of the SEC’s guidance coincides with a legislative deadlock in Congress over the Digital Asset Market Structure Act. Originally intended to clearly delineate the regulatory authority of the SEC and the Commodity Futures Trading Commission (CFTC) in digital asset markets, the bill has been delayed during Senate deliberations due to disputes over stablecoin yield mechanisms involving banking and crypto industry stakeholders.
In the absence of legislative progress, regulators are beginning to issue guidance based on existing legal frameworks to fill regulatory gaps. The White House has recently convened multiple meetings with banking and crypto industry representatives to seek consensus on market structure and regulatory authority issues.
Meanwhile, the CFTC has also submitted a regulatory proposal related to prediction markets to OIRA. This indicates that both major financial regulators are simultaneously strengthening their policy positions on digital asset markets.

Regulatory Authority and Market Order, Digital Asset Regulation Enters a New Phase
Currently, the SEC has three commissioners, while the CFTC has only one. Both agencies were originally designed as five-member bipartisan commissions. The current leadership is predominantly composed of members with Republican backgrounds, with Democratic appointees yet to be fully appointed. The industry is closely watching how future personnel appointments will influence regulatory directions.
On the other hand, disputes over jurisdiction remain between the SEC and CFTC in certain market sectors. For example, CFTC Chair Michael Selig recently stated that prediction markets should be fully regulated by the CFTC and emphasized its “exclusive jurisdiction” over related markets.
As the global digital asset market rapidly develops, U.S. regulators are gradually building a more comprehensive legal and regulatory framework. The SEC’s push for a token classification framework marks a significant step toward institutionalizing crypto regulation, which could have a profound impact on global regulatory trends in the crypto space.