This is straight from today's joint SEC/CFTC interpretive release (Release No. 33-11412). Here is a detailed breakdown of the CFTC's guidance on digital assets as non-securities: CFTC Rules on Digital Assets as Non-Securities — March 17, 2026 The CFTC's Role in Today's Release The CFTC provides guidance that it and its staff will administer the Commodity Exchange Act consistent with the SEC's interpretation, and that certain non-security crypto assets could meet the definition of "commodity" under the Commodity Exchange Act. (Lexology) In short, what the SEC declares is not a security, the CFTC claims as its jurisdiction as a commodity. The Five Categories of Crypto Assets & What Falls to the CFTC The joint release establishes a formal token taxonomy. Three of the five categories are explicitly not securities and fall under CFTC oversight: 1. Digital Commodities → CFTC jurisdiction A digital commodity is a crypto asset that is intrinsically linked to and derives its value from the programmatic operation of a crypto system that is "functional," as well as supply and demand dynamics, rather than from the expectation of profits from the essential managerial efforts of others. A digital commodity does not have intrinsic economic properties or rights, such as generating a passive yield or conveying rights to future income, profits, or assets of a business enterprise. (Lexology) Critically, the release names specific tokens confirmed as digital commodities today: Examples of digital commodities include Aptos (APT); Avalanche (AVAX); Bitcoin (BTC); Bitcoin Cash (BCH); Cardano (ADA); Chainlink (LINK); Dogecoin (DOGE); Ether (ETH); Hedera (HBAR); Litecoin (LTC); Polkadot (DOT); Shiba Inu (SHIB); Solana (SOL); Stellar (XLM); Tezos (XTZ); and XRP (XRP). (Lexology) 2. Digital Collectibles → Not securities Crypto assets that are designed to be collected and/or used and may represent or convey rights to artwork, music, videos, trading cards, in-game items, or digital representations or references to internet memes, characters, current events, or trends, among other things. (SEC.gov) 3. Digital Tools → Not securities Crypto assets that perform a practical function, such as a membership, ticket, credential, title instrument, or identity badge. (SEC.gov) What Remains a Security (SEC jurisdiction) Digital Securities (or "tokenized securities") are financial instruments enumerated in the definition of "security" that are formatted as or represented by a crypto asset, where the record of ownership is maintained in whole or in part on or through one or more crypto networks. (SEC.gov) The Critical Nuance: Non-Security ≠ Always Free of Securities Law Even a digital commodity can temporarily come under SEC oversight if sold under certain conditions. A non-security crypto asset becomes subject to an investment contract when an issuer offers it by inducing an investment of money in a common enterprise with representations or promises to undertake essential managerial efforts from which a purchaser would reasonably expect to derive profits. (Lexology) But this status can end: A non-security crypto asset ceases to be subject to an investment contract when the investment contract terminates because either the issuer has fulfilled its representations or promises or the issuer has failed to satisfy its representations or promises. (Lexology) This is the first time the SEC has formally said an investment contract can expire — a major change from prior practice. Activities Now Confirmed as Outside Securities Law Protocol mining, protocol staking, and the wrapping of a non-security crypto asset do not involve the offer and sale of a security. Certain crypto asset disseminations known as "airdrops" do not involve an "investment of money" under the Howey test. (Lexology) The Big Picture On January 29, 2026, Chairman Atkins and CFTC Chairman Michael S. Selig announced that Project Crypto — previously an SEC-led initiative — will proceed as a joint effort between the SEC and the CFTC to harmonize federal oversight of crypto asset markets. (Lexology) Today's release is the direct output of that joint effort, ending years of jurisdictional ambiguity between the two agencies. The CFTC now has a clear mandate over the vast majority of the crypto market, including Bitcoin, Ethereum, Solana, XRP, and most of the other major tokens by market cap.