SEC Clarifies the Application of Federal Securities Laws to Crypto Assets
On March 17, 2026, the SEC and CFTC issued a joint interpretive release establishing a coordinated federal framework for classifying crypto assets, clarifying that most digital assets fall outside the securities laws while confirming that tokenized securities remain fully subject to existing regulation.
Policy Tracker
Review our Policy Tracker to stay informed about new or potentially forthcoming legislation or regulation affecting blockchain technology and high-tech financial services sectors in the United States. Come back for important updates.
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Mar 17, 2026
SEC & CFTC issue nonbinding joint guidance clarifying application of securities laws to certain crypto assets
United States (Regulatory)
On March 17, 2026, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) issued joint interpretive guidance (the “Release”) addressing when crypto assets and related transactions fall within the federal securities laws. The Release establishes a coordinated federal framework that divides crypto assets into five categories, most of which it does not treat as securities. The Release distinguishes between digital assets themselves and transactions involving those assets, which could still be treated as investment contracts depending on how the offer or sale is structured.
The Release also states that many mining, protocol staking, wrapping, and airdrop arrangements involving nonsecurity crypto assets do not involve the offer or sale of securities where recipients provide no consideration. Although it does not have the force of law, the Release provides the clearest statement to date of how the SEC and CFTC intend to analyze crypto assets and related transactions under the federal securities laws.
Last Updated: 03/17/2026.
History:
- Mar. 17, 2026: SEC and CFTC issue joint interpretive guidance on the application of federal securities laws to certain crypto assets and related transactions. Application of the Federal Securities Laws to Certain Types of Crypto Assets and Certain Transactions Involving Crypto Assets.
Feb 13, 2026
Senate Ag Committee releases draft digital commodities legislation to complement CLARITY Act bill
United States (Legislative)
On January 29, 2026, the U.S. Senate Committee on Agriculture, Nutrition, and Forestry advanced draft legislation titled Digital Commodity Intermediaries Act (DCIA), signaling growing bipartisan momentum to establish a federal regulatory framework covering digital assets market infrastructure. The bill would grant the Commodity Futures Trading Commission (CFTC) primary authority over digital commodity intermediaries, including trading platforms, brokers, and custodians, which would need to register with the CFTC and comply with tailored conduct, customer protection, and recordkeeping requirements.
If enacted, the DCIA would formalize the CFTC’s role as the principal regulator for non-security digital assets and reinforce the jurisdictional divide with the U.S. Securities and Exchange Commission as put forward in the CLARITY Act, a more comprehensive market infrastructure bill being debated in both chambers of Congress. Like the CLARITY Act bill, the DCIA bill faces long odds in the current Congress.
Last updated 02/13/2026.
History
- Jan 29, 2026: The Senate Ag Committee advances the Digital Commodity Intermediaries Act. S.3755.
Jan 21, 2026
Commission proposes Digital Networks Act harmonizing EU telecom regulation
European Union (Regulatory)
On January 21, 2026, the European Commission proposed the Digital Networks Act (“DNA”), legislation that would establish a more uniform regulatory framework governing telecommunications networks and digital infrastructure across the European Union. The proposal would replace several existing EU telecommunications instruments, including the European Electronic Communications Code, the BEREC Regulation, and portions of the Open Internet and ePrivacy frameworks, with a single EU regulation governing authorization and operation of telecommunications networks.
If adopted by Parliament and Council, the Digital Networks Act would establish common authorization conditions across EU Member States and introduce new rules governing spectrum use, fiber network transition, infrastructure deployment, and network resilience. The proposal is intended to reduce regulatory fragmentation among Member States and create a more consistent framework for telecommunications operators deploying and operating network infrastructure across the EU. The proposal remains under consideration in the European Parliament and the Council of the European Union.
Last Updated 01/21/2026.
History:
- Jan 21, 2026: European Commission adopts the proposed Digital Networks Act and transmits it to Parliament and Council for negotiation. Proposal for a Regulation for the Digital Networks Act (DNA).
Jan 20, 2026
Commission proposes revised Cybersecurity Act targeting telecom network security
European Union (Regulatory)
On January 20, 2026, the European Commission proposed a revised Cybersecurity Act (“CSA 2.0”) that would expand the European Union’s authority to regulate cybersecurity risks in telecommunications networks and digital infrastructure. The proposal would repeal and replace Regulation (EU) 2019/881 and authorize EU institutions to designate certain suppliers of network equipment, software, and related technology services as posing cybersecurity risks.
If adopted, CSA 2.0 would require telecommunications operators and other network providers operating in EU Member States to restrict or phase out designated suppliers from critical components of their electronic communications networks and to implement risk mitigation measures required by EU authorities. The proposal would also authorize fines calculated as a percentage of an operator’s total worldwide annual turnover for non-compliance. The proposal remains under consideration in the European Parliament and the Council of the European Union.
Last updated: 01/20/2026.
History:
- Jan 20, 2026: European Commission adopts the proposed revision to the Cybersecurity Act and transmits it to Parliament and Council for legislative consideration. Proposal for a Regulation for the EU Cybersecurity Act.
Court Tracker
Consider DLx Law a source for updates on recent legal outcomes and ongoing cases that are shaping the landscape of blockchain and the financial services industry. With our Court Tracker, you can closely monitor other legal developments that are noteworthy for many of our clients and the industry as a whole. Check back in from time to time to stay informed about some recent regulatory enforcement actions and notable court cases.
Importantly, we make no representation whatsoever that the Court Tracker is up to date, comprehensive, or accurate, and it should not be relied on as legal or regulatory advice. Read our full disclaimer.
Notable Decisions
SEC v. Terraform Labs PTE Ltd. & Do Hyeong Kwon
S.D.N.Y. (Fed. Trial Ct.)
Filed: Feb 16, 2023
Description: The SEC charged Terraform Labs PTE Ltd and Do Hyeong Kwon with a multibillion-dollar crypto asset securities fraud. The SEC alleged that from April 2018 to May 2022, Terraform and Kwon raised billions of dollars from investors by offering and selling digital asset securities, including an algorithmic stablecoin called Terra USD (UST) and other crypto asset securities, many in unregistered transactions. In its complaint, the SEC alleged the following digital assets are unregistered securities: UST, LUNA, MIR.
Judgment entered
(Jun 12, 2024 )
Summary: The defendants entered a settlement agreement with the SEC, and the judge entered the consent order on June 12, 2024, with civil penalties, including just under $4.5 million in total monetary remedies against Terraform Labs, to be allocated under the organization’s Chapter 11 plan in U.S. Bankruptcy Court.
SEC v. Beaxy Digital, Ltd., et al.
N.D. Ill. (Fed. Trial Ct.)
Filed: Dec 25, 2023
Description: The SEC charged Beaxy (a digital asset trading platform) and its executives and founders with (1) raising $8 million in an unregistered securities offering (BXY tokens), misappropriating $900,000 of it for personal use, and (2) failing to register as a national securities exchange, broker, and clearing agency when facilitating the purchase and sale of digital assets as securities. The SEC alleged in its complaint that BXY tokens are securities.
Judgment entered
(Feb 13, 2024 )
Summary: The court entered default judgment against the defendants after they failed to make an appearance or respond to the SEC’s complaint.
In re: Coinbase Inc.
3d Cir. (Fed. Appeals Ct.)
Filed: Apr 24, 2023
Description: In spring of 2023, Coinbase filed an appellate-level petition seeking a writ of mandamus to compel the SEC to act on Coinbase’s pending rulemaking petition to provide clarity for the crypto industry.
Judgment entered
(Dec 18, 2023 )
Summary: Considered to be in large part the result of Coinbase’s mandamus petition seeking to compel a decision, the SEC on December 15, 2023, finally issued a formal decision denying Coinbase’s petition to have the SEC engage in rulemaking to clarify its interpretation of how securities laws can be applicable to business activities involving cryptocurrencies. As a result, the judge denied Coinbase’s mandamus petition as moot. Although it is not the outcome Coinbase sought, it now has a judicially reviewable decision to move forward with.
Ongoing Cases
U.S. v. Iurii Gugnin
E.D.N.Y. (Fed. Trial Ct.)
Filed: Jun 9, 2025
On June 9, 2025, the Department of Justice (DOJ) unsealed a 22-count indictment against crypto executive Iurii Gugnin, charging him with laundering over $500 million through cryptocurrency exchanges and U.S. banks. Prosecutors allege that Gugnin primarily acted on behalf of sanctioned Russian financial institutions, using his company, Evita, to facilitate transactions for various sanctioned entities worldwide. The DOJ also charged Gugnin with wire fraud, conspiracy to defraud the United States, and operating an unlicensed money transmitter business. Although Evita held a money transmitter license in Florida, the DOJ asserts that Gugnin secured it through fraudulent representations. If convicted, Gugnin faces a potential life sentence. Prosecutors claim Gugnin used Evita to facilitate purchases for foreign clients, including U.S. electronics and components (including those subject to export controls) for Rosatom, Russia’s state-owned nuclear technology company. Gugnin allegedly knew authorities were investigating him; the DOJ states he searched the web for “how to know if there is an investigation against you” and “evita investments inc. criminal records search.”
Status: DOJ prosecutors unsealed the 22-count indictment against Iurii Gugnin on June 9, 2025, and Gugnin was immediately arrested and now awaits trial. Updated 06/11/2025.
SEC v. Consensys Software Inc.
E.D.N.Y. (Fed. Trial Ct.)
Filed: Jun 28, 2024
Description: The SEC charged Consensys Software Inc., the development company behind MetaMask, for allegedly conducting unregistered offers and sales of securities by facilitating investments by MetaMask users into certain cryptocurrency staking protocols, namely, Lido and Rocket Pool. According to the SEC’s complaint, Consensys failed to register as a broker and did not meet the legal requirements for offering staking services while it collected more than $250 million in fees. The SEC’s complaint comes shortly after Consensys sued the SEC in April following its receipt of a Wells notice from the agency, challenging its attempts to classify ETH tokens and related staking service protocols as being unregistered securities.
Status: In anticipation of forthcoming guidance from the SEC’s Crypto Task Force, the SEC and Consensys jointly agreed to dismiss the case with prejudice. The move signals a strategic retreat in the agency’s approach to crypto infrastructure. It marks a win for firms that provide foundational services such as wallets and developer tools, rather than issuing or promoting tokens, and suggests that future enforcement may be reshaped by evolving internal policy. Updated 03/27/2025
U.S. v. Roman Storm et. al.
S.D.N.Y (Fed. Trial Ct.)
Filed: Aug 21, 2023
The U.S. government filed criminal charges against Tornado Cash developer Roman Storm on August 21, 2023, alleging that he conspired to operate an unlicensed money-transmitting business, violated U.S. sanctions law, and engaged in money laundering in connection with his role in developing the Tornado Cash protocol. Storm faces up to 45 years in prison if convicted. The case is viewed as a major test of developer liability in decentralized finance and the legal treatment of smart contracts and dApps. Storm’s defense argues that Tornado Cash’s smart contracts are immutable and self-executing, and that Storm did not actively facilitate money laundering. Counsel maintains the protocol was designed to enhance privacy in the transparent crypto ecosystem and that Storm’s code contributions are protected speech under the First Amendment. Prosecutors responded that Tornado Cash was repeatedly used to launder illicit funds, including by the Lazarus Group, a North Korean state-backed hacking organization under U.S. sanctions.
Status: On August 6, 2025, a federal jury convicted Roman Storm of operating an unlicensed money transmission business, following four days of deliberation. The jury acquitted Storm on related counts of money laundering and sanctions evasion, which carried potential 20-year prison terms. Storm now faces a maximum sentence of five years. He remains free on bail and is expected to appeal the conviction. Updated 08/11/2025.
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