Galaxy Research Head: US SEC New Rules Formally Mark the End of Gensler Era's Hostile Regulatory Stance Toward Crypto Industry

Deep Tide TechFlow News, March 21 — Galaxy Research Director Alex Thorn posted on X (formerly Twitter) that the U.S. Securities and Exchange Commission (SEC), in conjunction with the Commodity Futures Trading Commission (CFTC), released a milestone digital asset classification guideline this Tuesday. The guideline officially categorizes digital assets into five types: digital commodities, digital collectibles, digital tools, stablecoins, and digital securities (tokenized securities), clarifying that only the last category constitutes securities, which must be registered or exempted under federal securities laws.

This guidance, published as an interpretive rule at the commission level in the Federal Register, explicitly replaces the “investment contract” analysis framework used since 2019 under Gensler’s era. It provides two clear pathways for tokens to be deemed outside the scope of securities: first, if the issuer completes its core management commitments, the investment contract terminates, and the token can be freely traded as a non-security in the secondary market; second, if the issuer abandons the project or remains silent for a long period, the investment contract also terminates. Additionally, the guideline states thatairdrops, mining, and staking generally do not constitute securities transactions, and asset wrapping or unwrapping does not alter their security status.

Thorn believes this guideline marks the end of Gensler’s adversarial regulatory stance toward the crypto industry, providing important clarity for institutional participation. However, he also notes that interpretive rules lack legal binding force and can be overturned by the new administration at any time, which is a key reason why industry advocates continue to push for legislation like the CLARITY Act.