On March 17, 2026, the SEC and CFTC issued long-awaited interpretive guidance clarifying how federal securities laws apply to crypto assets and transactions, representing a notable shift toward increased collaboration between the agencies. The guidance provides direction on applying crypto assets to the Howey test while specifying that digital commodities, collectibles, tools and stablecoins are generally not securities, though they may still be subject to investment contracts depending on how they're offered or marketed. This guidance reflects the agencies' joint memorandum of understanding intended to reduce regulatory overlap and foster coordination. The interpretation establishes that while digital securities remain under SEC jurisdiction, the new framework acknowledges that tokens initially sold as investment contracts can transition to digital commodities once networks become sufficiently decentralized. Industry experts view this as providing the regulatory clarity needed for institutional participation and mainstream adoption.