SEC defines Crypto classification for the first time: BTC is a "digital commodity"
The meeting centered around the regulatory aspects of Crypto, including defining a taxonomy for digital assets and regulating the staking of ETPs. This article originates from an article written by cryptoslate and is organized, compiled and written by Shenchao TechFlow.
(Preliminary summary: SEC confirmed receipt of Grayscale application, seeking to open Ethereum spot ETF staking function, ETH/BTC rebound)
(Background supplement: SEC Trends" met with Fidelity and MITER to discuss "ETF staking" and DeFi supervision)
On February 21, the U.S. Securities and Exchange Commission (SEC) Crypto Task Force and Strategy Executive Chairman Michael Thaler Saylor), the Council for Crypto Asset Innovation (CCI) and MIT Research Corporation (MITRE) met to discuss the best ways to regulate crypto assets in the United States.
According to a memo shared by the SEC, task force staff reviewed a framework document that defines the Crypto taxonomy and regulatory structure during the meeting.
The document classifies digital commodities, including BTC, digital securities tied to issuers, digital currencies backed by fiat currencies, digital tokens with defined uses, non-fungible tokens (NFTs) for unique digital applications, and digital asset-backed (ABT) assets tied to physical commodities.
The dossier clarifies the rights and responsibilities of issuers, exchanges and asset owners by calling for fair disclosure, transparent custody practices and compliance with local laws. The framework also proposes standardized disclosures, industry-led compliance processes, and asset issuance and maintenance cost limits.
In addition, Thaler's speech emphasized the potential for faster asset issuance, lower costs, wider market access, and possible shifts in capital markets that can be achieved through BTC Reserves and other strategic measures to strengthen the dollar and reduce the national debt.
Revisiting the staking business
Representatives from CCI recommended clarifying the regulatory treatment of staking services, passive blockchain data platforms and incentive-based rewards.
The meeting included 20 participants from several companies in the crypto space, including Coinbase, a16z and the Filecoin Foundation. Representatives.
They recommended issuing guidance or no-action relief notices to confirm that bona fide staking services and related infrastructure providers are not subject to securities laws. This change may allow Crypto exchange-traded products (ETPs) to include staking activities in the declaration.
The CCI also recommended that when the platform only provides access or information display functions, these should be provided with blockchain exploration tools and non-custodial Web3. Marketplace platforms are excluded from the definition of brokers, exchanges or alternative trading systems
The recommendations also call for guidance for NFTs. Defining non-security status, these tokens are primarily used for art, collectibles, virtual land, or similar non-financial applications.
Other recommendations include issuing no-action letters, suspending compliance-only enforcement actions, and modifying the rulemaking process to consider decentralized and on-chain transactions.
The Council urges the SEC. Build on previous decisions and industry momentum to enhance regulatory clarity and investor protection in the U.S.
Research-driven insights on stablecoins
MITRE Corporation describes its research and development activities focused on the Crypto market and its regulatory implications
As a federal research and development center funded by the U.S. Treasury Department, the company outlined its work on a logic-based regulatory approach to stablecoins, developed workflow tools to support comment processing, and used a policy visualization system to determine regulatory dependencies.
MITRE also detailed its Digital Asset Threat Sharing Platform and Crypto Cyber threat framework in the field.
Research results discussed at the conference revealed hidden centralization issues in decentralized finance (DeFi), highlighted the need for bank stress testing in scenarios where DeFi is combined with traditional finance, and recommended the implementation of circuit breakers at the smart contract level to mitigate risk propagation.
MITRE’s technical work aims to support the SEC by providing data-driven insights and innovative tools.
The meeting concluded with a comprehensive review of proposals and studies aimed at establishing a regulatory framework that can both support innovation and ensure market integrity.
