Treat most digital assets as commodities rather than securities
What the document says“Otherwise, the digital asset shall be deemed a commodity to be regulated by the CFTC, not the SEC.”
The part proposes a joint regulation under which a digital asset holder is not treated as party to an investment contract unless entitled to a share of earnings, a defined flow of payments, or rights against assets on liquidation. It says both agencies have been irresponsible in this area, choosing regulation by enforcement and doing it poorly, and that Congress should legislate if they do not act.
What the document actually says“Otherwise, the digital asset shall be deemed a commodity to be regulated by the CFTC, not the SEC.”
If not, the token counts as a good. A different agency would watch it.
Crypto tokens are regulated, but it is unclear by whom. The book sets a test. Most tokens would fall to the commodities agency.
No action is recorded against this proposal. That is not evidence that none has been taken. See what the tracker does not yet cover.