A "crypto asset" is defined by the SEC and CFTC in their joint interpretative release of March 23, 2026 ("the Interpretation") as any digital representation of value that is recorded on a cryptographically secured distributed ledger. The Interpretation establishes a five-category taxonomy for classifying crypto assets—digital commodities, digital collectibles, digital tools, stablecoins, and digital securities—of which only digital securities are treated as securities under the federal securities laws.
A crypto asset security (digital security) is a crypto asset that constitutes a financial instrument already enumerated in the statutory definition of "security" under the Securities Act of 1933 and the Securities Exchange Act of 1934, including, without limitation, a stock, bond, note, or other conventional security instrument that is issued, represented, or transferred in the form of a crypto asset. Such instruments do not lose their status as securities merely because they are formatted as or represented by a crypto asset (i.e., "tokenized securities"). In addition, a non-security crypto asset that is offered or sold pursuant to an investment contract—as determined under the test set forth in SEC v. W.J. Howey Co., 328 U.S. 293 (1946)—may also be subject to the federal securities laws with respect to those specific transactions.
Source: https://www.sec.gov/files/rules/interp/2026/33-11412.pdf