Three years ago Gary Gensler said that projects in crypto should register as securities, a stance that shaped enforcement and market behavior.

Shift in regulatory approach

On 18 March the SEC’s successor spoke at the DC Blockchain Summit and described past treatment of crypto as a failure in regulatory approach.

For the first time the SEC has separated digital assets into clear categories and stated which classes fall outside securities regulation.

Categorizations announced

The regulator listed categories that it considers not to be securities and identified the class subject to SEC jurisdiction.

• Digital commodities — examples include Bitcoin and most proof‑of‑work assets; these are not securities.
• NFTs and collectibles — classified as not securities under the new interpretation.
• Domains and utility tokens — treated as not securities in the updated framework.
• Payment stablecoins — also designated as not securities by the regulator.
• Digital securities — explicitly remain under SEC regulation and oversight.

Coordination with other regulators

The Commodity Futures Trading Commission joined the statement, signaling agreement between the two agencies after years of jurisdictional disputes.

"We are no longer the securities commission and everything else."

The change of wording removes a long‑standing source of legal uncertainty that had driven teams and capital away from the United States.

Implications for the market

The main brake on the American crypto market has been legal uncertainty rather than a lack of technology or capital, according to observers.

Founders often faced the risk of unexpected enforcement actions after raising funds, prompting many teams to relocate to Singapore, Dubai, and the UAE.

While rhetoric has changed quickly, practical implementation will require many additional steps, including rulemaking, court decisions, and infrastructure adjustments.

Still, the narrative shift removes a convenient regulatory excuse for hesitant institutional investors and may lay groundwork for a different cycle with broader participation.