Hello all,
I had, and many others have as well pointed out that in the long run most, if not all cryptocurrencies will be classified as commodities. Now that the clearly antic-cryptocurrency Gensler was out at the SEC and Donald J. Trump was elected president, cooler heads had prevailed and admitted what we already knew. THAT CRYPOCURRENCIES ARE COMMODITIES!!!!!!!!!!!!!
Here is an article https://www.fintechweekly.com/news/sec-bitcoin-ether-solana-digital-commodities-not-securities-march-2026 discussing the 68 page joint document from the SEC and CFTC.
Again, if you read the Howey test, which became a legal standard set in 1946 following the SEC vs. Howey and Co. it identified four standards to determine if a transaction qualifies as an "investment contract." If it it incudes an investment of money, common enterprise (the investor is tied to the promotor or other investors) expectation of profit, and efforts of others then it is a security Now, that is brief description, and you can argue both sides, but I would posit that that it is not a common enterprise, that those who "buy" cryptocurrency are not connected to other investors, and those who "buy" cryptocurrency do not profit form the efforts of others, in other words, that profits do not come from the managerial effort or entrepreneurial efforts of others the same way a business does. You can argue all you want about it, and a healthy debate is good. I do think those who invest in cryptocurrency do expect a profit but also are keenly aware that it is a high risk and volatile asset and that and it does not include an investment of money. So, I would believe the SEC and CFTC got it right due to cryptocurrencies only meeting two of the four Howey test criteria.
The joint document identified 16 cryptocurrencies as commodities, they are (in alphabetical order):
1. Aptos (APT)
2. Avalanche (AVAX)
3. Bitcoin (BTC)
4. Bitcoin Cash (BCH)
5. Cardano (ADA)
6. Chainlink (LINK)
7. Dogecoin (DOGE)
8. Ethereum (ETH)
9. Hedera (HBAR)
10. Litecoin (LTC)
11. Polkadot (DOT)
12. Shiba Inu (SHIB)
13. Solana (SOL)
14. Stellar (XLM)
15. Tezos. (XTZ)
16. Ripple (XRP)
Now, the document also classified cryptocurrencies into five categories: digital commodities, digital collectibles, digital tools, stablecoins, and digital securities.
It should be noted that the document is an outline and not law, and that the CLARITY ACT will codify this into law if it passes the house, senate, and is signed by the president.
Here's to the future!!!!!
