Galaxy Research Head: New SEC Rules End "Gensler Era" Ambiguity, Redefining Digital Asset Regulatory Boundaries

Alex Thorn, Head of Galaxy Research, posted on platform X, stating that the U.S. Securities and Exchange Commission (SEC) issued landmark guidance this week, clearly categorizing digital assets into five types: digital commodities, digital collectibles, digital instruments, stablecoins, and digital securities (or tokenized securities). It explicitly states that only the last category constitutes securities, requiring registration or exemption under federal securities laws. This 2026 guidance replaces the 2019 "investment contract" analysis framework from Chairman Clayton's era. It is a commission-level interpretive document approved by a vote of all SEC commissioners and published in the Federal Register. This marks a shift in the SEC's approach to digital asset regulation from the hostility and ambiguous rules of the Gensler era towards a more structured, transparent, and industry-supportive stance. Key changes include:

Non-security digital assets can be freely traded on secondary markets after the issuer fulfills its core management commitments and are no longer continuously deemed securities;

Eliminating "sufficient decentralization" as a criterion, clarifying that judgment is based on the issuer's public commitments;

Providing clear safe harbor provisions, such as airdrops, mining, and staking typically not constituting securities transactions;

The scope of the "Efforts of Others" analysis is significantly narrowed, focusing only on the issuer's core management promises and ignoring third-party market hype or community commentary.

The guidance was jointly issued with the U.S. Commodity Futures Trading Commission (CFTC). The CFTC agreed to follow the SEC's interpretation that non-security assets can be classified as "commodities." This guidance clearly ends the Gary Gensler-era regulatory model, provides clear market expectations, and lays the groundwork for further institutionalization of digital assets. However, it may still be affected by future changes in the SEC commission. This policy shift highlights a mature regulatory approach to digital assets. Alex Thorn also echoed industry calls for the "CLARITY Act," which is expected to provide more enduring legal safeguards, enabling Bitcoin and crypto assets to develop long-term within the U.S. capital markets.