Why Bitcoin and Ethereum Are No Longer Considered Securities: Everything You Need to Know About the Changes in the Crypto Market

Cryptocurrency regulation is coming to the forefront worldwide. A number of countries have already recognized it as a payment method. And major corporations have moved past the “it’s just another pyramid scheme” stage. For a long time, this industry operated without clear rules governing its activities. Many people wondered what would happen next and, more generally, how the law defines crypto assets.

But now the situation is becoming clearer. Many years have passed, and only recently has this been seriously discussed.

At the DC Blockchain Summit 2026, SEC Chair Paul Atkins stated that Bitcoin and Ethereum cannot be considered securities. In addition, the SEC presented a new regulatory framework for the cryptocurrency market. It is said that this framework could take hold and become the basis for regulating the industry. 

Why aren’t Bitcoin and Ethereum securities?

Previously, these assets were considered securities under current financial legislation: an investor invests in an asset and then expects to make a profit through the efforts of a third party. But in the cryptocurrency world, things work differently.

The fact is that Bitcoin has no issuer. It does not promise you a 100% return, and it is not managed by a specific company. 

However, unlike Bitcoin, Ethereum has an active developer ecosystem, infrastructure, and updates.  This makes it a somewhat ambiguous asset from a regulatory standpoint. In other words, it’s impossible to say definitively that Ether qualifies as a security, but it’s also difficult to deny it.

In fact, this blurred picture has created quite a few problems in cryptocurrency cases. We can see that establishing market regulation is not just desirable, but necessary.

The SEC’s decision 

The new model provides for the following: most crypto assets cannot be classified as securities. This applies to utility tokens, digital commodities, collectible assets, and payment stablecoins.

Regarding Bitcoin and Ethereum: they have been classified as digital commodities. Therefore, they are not subject to securities laws. 

About the asset and how it is distributed: what’s the difference

We have already discussed that, in essence, a token is not a security. However, there are still cases where it falls under such regulation. For example, when a token is sold as an investment instrument. 

Scenario: An investor invests in a particular crypto asset and is promised a return that depends on the actions of the project team. In such a case, securities laws would apply.

Therefore, the SEC distinguishes between two levels:

• Asset
• The economic model of its offering 

CFTC and SEC: Who is responsible for what?

The current goal is also to resolve a long-standing conflict of jurisdiction, regarding which the CFTC and SEC have issued joint clarifications.

• SEC – responsible for assets with characteristics of investment instruments
• CFTC – for those that can be classified as commodities

In Summary

Regulatory certainty in the cryptocurrency market is something many have been lacking. At present, it is difficult to assess the potential impact of the new industry regulations. However, in the future, this could minimize risks and contribute to the development of infrastructure—including investment funds and new financial instruments.