Recent guidance from the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission establishing a taxonomy for digital assets put the “final nail” in the coffin of SEC policy under former Chairman Gary Gensler, according to Alex Thorn, head of research-wide at investment firm Galaxy.
The SEC advicepublished Tuesday, established a taxonomy for digital assetsby dividing them into five categories, including digital products, digital collectibles like non-fungible tokens (NFT), digital tools, stable coins and tokenized securities.
Under the SEC’s old policy framework, the regulations governing which cryptocurrencies met the legal criteria for “investment contracts” were statutory rules, as opposed to the new 2026 guidance that was filed as an interpretive rule, Thorn. said. He explains its meaning:
“The distinction is extremely important under the Administrative Procedure Act (APA). A legislative rule or substantive rule passes through notice and comment rulemaking, has the force and effect of law, and is binding on both the agency and the regulated parties.”
An interpretive rule is exempt from notice and comment requirements, has no force of law, and simply explains how the agency understands existing statutory provisions,” he continued.
The interpretive rule does not legally require courts to enforce the policies, giving the SEC and the crypto industry flexibility to adapt to future regulatory changes, he added.
The new regulatory approach gives the crypto industry much-needed clarity over the next 30 months, Thorn said; however, he clarified that the CLARITY Crypto Market Structure Bill must be codified into law to consolidate the rules over the coming decades.
Related: SEC’s Interpretation of Crypto Laws Is ‘A Beginning, Not an End,’ Says Atkins
CLARITY Act stalled, but rumors emerge of tentative deal between White House and lawmakers
The CLARITY law at a standstill in January 2025, after the crypto exchange Coinbase and others industry players have expressed their concerns due to the stablecoin yield ban and lack of protection for open source software developers.
Crypto companies and industry thought leaders have also cited provisions that would effectively hollow out the decentralized finance (DeFi) industry by imposing reporting requirements and know-your-customer controls on DeFi as a major cause of discord.
On Friday, Politico published a report of an attempt agreement between the White House and lawmakers to advance the CLARITY bill.
Specific details of the potential deal have not yet been revealed, although Senator Angela Alsoboorks said the tentative agreement included a ban on stablecoin yield from “passive balances.”
Review: How crypto laws changed in 2025 – and how they will change in 2026
