Six major blockchain organizations, including Chainlink Labs and the Cardano Foundation, have formally requested that the US Securities and Exchange Commission (SEC) classify digital commodities as non-securities within its proposed regulatory framework. The joint letter, dated October 20, was submitted as the agency’s public consultation on proposed crypto regulations concluded on Tuesday. Signatories also included Hedera, Aptos Labs, Ava Labs, and the Stellar Development Foundation.
The groups urged the SEC to incorporate its existing digital commodity classification directly into the Regulation Crypto Assets framework. They argued that relying solely on interpretive guidance leaves market participants facing legal uncertainty regarding which securities laws apply. While the SEC’s current interpretation recognizes digital commodities as a distinct category, the proposed rules do not explicitly reflect this distinction, potentially creating ambiguity for developers and other stakeholders.
In addition to classification clarity, the letter seeks greater definition on how securities laws apply to secondary-market transactions involving digital assets. The organizations also requested specific guidance on the treatment of staking and other activities associated with decentralized blockchain networks. The SEC introduced its proposed crypto framework in August, drawing roughly 140 public comments over a 60-day period from industry participants and legal scholars offering competing views on exemptions and safe harbors.
The push by prominent blockchain foundations to codify digital commodity status within the SEC's formal rulemaking process highlights a critical gap between regulatory intent and operational certainty. By arguing that interpretive guidance is insufficient, these entities are signaling that market participation requires explicit statutory or regulatory definitions rather than discretionary enforcement postures. This move attempts to lock in favorable classifications before potential shifts in agency leadership or policy priorities could alter the landscape.
From a Compliance perspective, the request for clarity on secondary-market transactions and staking addresses two of the most contentious areas in current crypto regulation. If the SEC fails to integrate these distinctions into the final Regulation Crypto Assets framework, it may leave a significant portion of the industry operating under ambiguous legal risks. The outcome of this consultation will likely determine whether future enforcement actions target technical infrastructure providers or focus primarily on centralized intermediaries, shaping the structural development of decentralized finance in the United States.
