- Six blockchain groups want token classifications written into enforceable SEC rules.
- The letter seeks clearer treatment of secondary trading and staking.
- The request does not constitute a new SEC classification decision.
Six blockchain organizations have asked the U.S. Securities and Exchange Commission to write digital commodity status into binding regulations. Their October 20 letter targets the proposed Regulation Crypto Assets framework, arguing that explanatory guidance leaves legal uncertainty. The request seeks clearer boundaries for token issuers, developers and trading platforms as the public comment period closes.
Digital commodity status takes center stage in SEC letter
Chainlink Labs, the Cardano Foundation, Hedera, Aptos Labs, Ava Labs and the Stellar Development Foundation signed the joint submission. They want the agency to preserve the distinction between a token and an investment contract involving that token.
The groups argue that selling an asset through an investment contract does not automatically make the underlying asset a security. They want that principle reflected directly in the enforceable rule text.
The Cardano Foundation said the SEC had already described ADA as a digital commodity earlier this year. Its concern centers on whether the proposed rules themselves provide that clarity.
The difference matters for compliance planning. Explicit language could help businesses assess which securities requirements apply to their activities, without relying solely on explanatory commentary.
Secondary trading and staking remain key policy questions
The letter also requests guidance on secondary-market transactions, staking and other activities involving decentralized networks. These questions concern how assets are used and traded after their initial distribution.
The signatories want assurances that the framework will preserve existing token classifications and the boundary between SEC and CFTC authority. A digital commodity definition would therefore address more than terminology; it would help clarify the framework’s scope.
The SEC proposed Regulation Crypto Assets in August, including fundraising exemptions and a conditional investment-contract safe harbor. The consultation attracted roughly 140 comments during its 60-day window.
The submission seeks changes to a proposal and does not establish a new classification decision. Nor would the requested digital commodity language automatically exempt every token-related transaction from securities law.
The agency has not announced whether it will incorporate the requested wording into its final rules.
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