New guidance from the US Securities and Exchange Commission and Commodity Futures Trading Commission has introduced a formal taxonomy for digital assets, signalling a major shift in crypto regulation.
The framework classifies cryptocurrencies into five categories, including digital commodities, NFTs, stablecoins, tokenised securities and digital tools, providing clearer definitions for market participants.
Galaxy research head Alex Thorn said the move effectively places a “final nail” in the regulatory approach under former SEC Chair Gary Gensler.
The updated guidance is structured as an interpretive rule rather than a legislative one, meaning it explains how regulators view existing laws without carrying the same binding legal force.
This distinction allows greater flexibility for both regulators and the crypto industry, though it also means courts are not required to enforce the framework.
Thorn said the guidance offers clarity for the next 30 months, but long-term certainty depends on the passage of the CLARITY Act, which remains under negotiation.
The bill has faced pushback over provisions related to stablecoin yields and DeFi regulations, although reports suggest a tentative agreement between lawmakers and the White House could revive progress.