Blockchain groups ask SEC to classify digital commodities

Chainlink Labs, the Cardano Foundation and four other blockchain groups have urged the U.S. Securities and Exchange Commission to classify digital commodities as non-securities in its proposed crypto rules. The organizations want the classification written into the SEC’s proposed Regulation Crypto Assets framework.

In a joint letter dated Oct. 20, the groups argued that interpretive guidance alone would leave developers and other market participants uncertain about which securities rules apply to digital assets. The letter was submitted as the SEC’s 60-day public consultation on the framework closed Tuesday.

The other signatories are Hedera, Aptos Labs, Ava Labs and the Stellar Development Foundation. The groups maintain that the SEC’s current interpretation treats digital commodities as a category separate from securities, while the proposed framework does not clearly reflect that distinction.

The letter also asks the SEC to clarify how securities laws apply to secondary-market transactions involving digital assets. It requests additional guidance on staking and other activities linked to decentralized blockchain networks.

The SEC introduced its proposed crypto framework in August. The agency received about 140 public comments during the consultation. Industry participants and legal scholars offered views on proposed exemptions for crypto offerings and a conditional safe harbor for certain tokens.