Six prominent blockchain organizations have called on the US Securities and Exchange Commission (SEC) to clearly define digital commodities as non-securities. Their joint request also pressed regulators to clarify rules regarding staking services and secondary trading of digital assets.
Blockchain networks seek regulatory clarity
The request was outlined in a letter signed by Chainlink Labs, the Cardano Foundation, Hedera, Aptos Labs, Ava Labs, and the Stellar Development Foundation. These organizations each play a key role in the development and governance of leading blockchain networks, driving advancements in decentralized finance and digital asset infrastructure.
The six groups urged the SEC to formally adopt ‘digital commodity’ classification as a core part of its proposed Regulation Crypto Assets framework, instead of only offering interpretive guidance. Citing market uncertainty, they argued that clear guidelines are necessary to help developers and participants determine whether securities laws apply to their projects.
The organizations stated that the absence of explicit classification forces developers and market participants to guess whether securities regulations will apply, exposing them to unnecessary legal and market uncertainty.
Specifically, the letter emphasized the need for unambiguous policy so that innovation can develop within a straightforward legal landscape. The request follows the conclusion of the SEC’s recent comment period on crypto asset regulations.
Staking, trading rules among main demands
Beyond asset classification, the letter also asked the SEC to clarify how securities laws impact activities such as staking and secondary-market trading. The groups seek regulatory certainty for processes like protocol staking and the use of staking receipt tokens, which are pivotal for many decentralized networks.
Previously, in a joint document issued with the Commodity Futures Trading Commission (CFTC), the SEC had assigned crypto assets to five categories: digital commodities, digital collectibles, digital tools, stablecoins, and digital securities. The blockchain groups are now advocating for those distinctions to be embedded into legal frameworks to avoid confusion across the industry.
Mini dictionary: Staking is a process on proof-of-stake blockchains where users lock up digital assets to help secure the network and earn rewards. Staking receipt tokens represent staked assets and can sometimes be used in other decentralized finance applications, raising regulatory considerations for their legal treatment.
Responses from Wall Street and policy groups
The SEC’s draft regulatory framework, published in August, generated over 100 responses from industry stakeholders. Crypto companies, trade organizations, and major financial institutions all weighed in with their perspectives on the proposal’s exemptions and requirements.
The plan includes an exemption for token offerings, with start-up projects eligible for up to $5 million in unregistered offerings, and a broader fundraising exemption covering up to $75 million within a one-year period. The Hyperliquid Policy Center expressed support for the proposal but recommended the SEC adjust its treatment of airdrops, arguing that distributing tokens for free should not constitute a securities transaction.
| Exemption Type | Amount | Period |
|---|---|---|
| Startup Exemption | $5 million | Per offering |
| Fundraising Exemption | $75 million | 12 months |
Other groups also responded with critical feedback. The Alternative Investment Management Association requested clearer language around investors’ rights, while the Securities Industry and Financial Markets Association highlighted a new five-year “innovation exemption” that permits onchain trading of tokenized stocks.
UK’s FCA advances DeFi industry consultations
Meanwhile, the UK’s Financial Conduct Authority (FCA) opened two new consultations focused on decentralized finance (DeFi) regulatory guidance. The first, GC26/7, targets operational resilience, anti-money laundering compliance, and financial crime prevention among regulated firms using DeFi systems. The second, CP26/36, examines recent legislative changes that affect the regulatory boundary of crypto assets.
According to the FCA, the consultations are intended to clarify—not create—policy, and both are open until November 18, 2026. The FCA plans to issue final guidance in January 2027.
The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 is scheduled to take full effect on October 25, 2027. Firms are able to begin applications on September 30, 2026, with a filing deadline set for February 28, 2027.
