Regulatory Authorities Conclude 10-Year Debate

The U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) issued a joint 68-page interpretive guidance on the 17th (local time), officially classifying 16 major cryptocurrencies including Bitcoin and Ethereum as 'digital commodities.' This decision effectively brings closure to the debate over the legal status of cryptocurrencies that has persisted since 2013.

SEC Chairman Paul Atkins stated, "We acknowledge that most cryptocurrencies are not securities." The cryptocurrencies classified as non-securities in this guidance include Bitcoin, Ethereum, XRP, Solana, and Dogecoin. Regulatory authorities defined them as "crypto assets whose value is determined by programmatic operations and supply-demand dynamics."

Securities vs. Commodities: What's the Difference?

The SEC presented a key distinction explaining why cryptocurrencies are not securities. Unlike stocks, bonds, derivative-linked securities, and investment contract securities, cryptocurrencies lack the characteristic of "expectation of profits from the managerial efforts of others." In other words, the value of cryptocurrencies is determined not by the business performance of a specific issuer or manager, but by the technical operation of the network itself and market supply and demand.

The guidance categorized digital assets into five types. NFTs and meme coins were classified as 'digital collectibles' and also excluded from securities. Payment stablecoins were not included in the securities category either. However, there was a caveat that digital collectibles could still be classified as securities if they structurally contain investment contract elements.

Impact on the Korean Market

This decision signals significant ripple effects for Korea's cryptocurrency market. Korean regulatory authorities have been closely monitoring the direction of U.S. regulation and have used American decisions as a key reference point in the process of organizing related legislation, including the Virtual Asset User Protection Act.

With the U.S. clearly defining major cryptocurrencies as commodities rather than securities, Korean financial authorities are likely to organize their regulatory framework in a similar direction. In particular, domestic institutional investors and the financial sector's consideration of entering the cryptocurrency market is expected to gain further momentum. Considering that traditional financial institutions such as banks and securities firms have been reluctant to enter the cryptocurrency business due to 'unregistered securities sales' risks, this decision could be a turning point for institutional adoption.

A Long Journey Since 2013

The debate over the legal status of cryptocurrencies began in 2013 when the Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Treasury Department, first announced regulatory policies for virtual currency operators. At that time, there were no clear standards on whether to view cryptocurrencies as a form of currency or as securities.

When the ICO (Initial Coin Offering) boom erupted in 2017, the SEC launched aggressive enforcement actions. It regarded most ICO projects as 'unregistered securities offerings' and imposed sanctions. The Ripple (XRP) lawsuit became a symbol of regulatory debates during this period. The SEC filed a lawsuit against Ripple Labs in 2020, claiming "XRP is an unregistered security," and this case continued until 2023, casting uncertainty over the entire industry.

The Terra-Luna collapse and FTX bankruptcy in 2022 strengthened the need for regulation. However, opposition from the industry and Congress intensified simultaneously, arguing that "treating all cryptocurrencies as securities doesn't align with reality." Following the Trump administration's inauguration, pro-cryptocurrency policy directions strengthened, leading to this joint guidance announcement.

Future Outlook [AI Analysis]

While this joint interpretive guidance provides considerable clarity to the market, it does not establish a complete legal foundation. Since interpretive guidance is not law, the possibility remains that it could be reversed depending on changes in administration or regulatory authority positions. To secure permanent legal stability, the enactment of the 'CLARITY Act' currently under congressional discussion is essential. The bill passed the House in July 2025 but still awaits Senate procedures.

In the short term, traditional financial institutions' entry into the cryptocurrency market is likely to accelerate. Major investment banks such as Goldman Sachs and JP Morgan are expected to fully launch cryptocurrency custody and trading services that they had postponed due to legal uncertainties. This could lead to increased market liquidity and price stabilization.

However, not all cryptocurrencies have been freed. Regulatory authorities still retain the authority to classify projects with elements of "expectation of profits from others' managerial efforts" as securities. Future new cryptocurrency projects will need to carefully review the standards of this guidance from the design stage.

The Korean government is also likely to reorganize related legislation in line with U.S. regulatory direction. The Financial Services Commission and Financial Supervisory Service are already working on institutionalizing the virtual asset market, and this U.S. decision is expected to be an important reference point for setting domestic policy direction. In particular, discussions on expanding the scope of institutional investors' virtual asset investments are expected to gain momentum.