Blockchain organizations urge SEC to codify non-security status for digital commodities

Six major blockchain organizations, including the Cardano Foundation, Chainlink Labs, Stellar Development Foundation, Hedera, Aptos Labs, and Ava Labs, have submitted a joint public comment to the U.S. Securities and Exchange Commission (SEC). The group is requesting that the SEC’s proposed 'Regulation Crypto Assets' explicitly codify the classification of digital commodities as non-securities within the formal regulatory text.

While the SEC’s March 2026 interpretation previously identified certain assets as digital commodities, the organizations argue that the current regulatory proposal only mentions this distinction in the preamble rather than the actual legal provisions. They contend that this lack of formal codification creates legal uncertainty for developers, exchanges, and custodians.

The joint letter outlines four primary demands:

1. Explicitly adding 'digital commodities' to the regulatory definitions to ensure they are recognized as non-securities. 2. Clarifying how securities laws apply to secondary market transactions where buyers do not have a reasonable expectation of profits from the efforts of others. 3. Addressing legal risks regarding 'Rule 400' safe harbors to ensure compliance does not imply the existence of prior investment contracts. 4. Maintaining the existing jurisdictional boundaries between the SEC and the Commodity Futures Trading Commission (CFTC).