Digital commodity classification should be written directly into the US Securities and Exchange Commission’s proposed crypto rules, six blockchain organizations argued in a joint letter dated Oct. 20. The groups want the framework to formally treat digital commodities as non-securities rather than leave that distinction to interpretive guidance.
Key Takeaways
- Chainlink Labs and the Cardano Foundation joined four other blockchain organizations in the submission.
- The groups argue that interpretive guidance alone leaves developers and market participants facing legal uncertainty.
- Their letter also seeks clarity on secondary-market transactions, staking and other decentralized-network activities.
Table of Contents
- Digital commodity classification is the letter’s central request
- Trading and staking questions extend beyond classification
- Conclusion
Digital commodity classification is the letter’s central request
The submission brings together Chainlink Labs, the Cardano Foundation, Hedera, Aptos Labs, Ava Labs and the Stellar Development Foundation. Their request focuses on what the proposed Regulation Crypto Assets framework says explicitly about the boundary between digital commodities and securities.
The organizations argue that the SEC’s existing interpretation already recognizes digital commodities as a separate category, but that the proposed rules do not expressly reflect that distinction. In their view, relying on guidance without incorporating the classification into the rules leaves uncertainty over which securities requirements apply to developers and other market participants.
Trading and staking questions extend beyond classification
The letter also asks the SEC to clarify how securities laws apply when digital assets trade in secondary markets. It seeks further explanation of the treatment of staking and other activities associated with decentralized blockchain networks.
The joint submission came as the public consultation closed on Tuesday, Oct. 20. Introduced in August, the proposed framework attracted roughly 140 comments over 60 days, with industry participants and legal scholars offering competing views on crypto-offering exemptions and a conditional safe harbor for certain tokens.
Conclusion
The six organizations are asking for an explicit regulatory distinction, not reporting an adopted change. Their submission puts the treatment of digital commodities, secondary trading and staking before the SEC as it considers the proposed framework.
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