The US Securities and Exchange Commission (SEC) has issued new guidance stating that most cryptocurrencies are not securities. The market barely moved on Wednesday.
Bitcoin traded near $73,900, showing no net change for the day. Ethereum, Solana, and Dogecoin also remained flat. The total crypto market cap stayed at $2.61 trillion.
The SEC released its updated framework on Tuesday night. It explains how the agency applies the Howey Test to decide if a token counts as a security. The document suggests many tokens fall outside securities law based on their structure and use.
The agency named 16 digital commodities that are not securities. These include Litecoin and Cardano. This marks a shift from previous years, when the SEC’s stance created legal uncertainty for many projects.
SEC Chair Paul Atkins also proposed a “safe harbor” framework for crypto firms. This would ease compliance burdens for companies operating in the space.
Traders paid little attention to these developments. Their focus sits on the Federal Reserve’s rate decision later today. Markets expect rates to hold steady between 3.50% and 3.75 percent.
Investors have pushed back expectations for rate cuts. Most now predict the first cut will not come before September or October. Risk assets like crypto often lose steam when rate cuts get delayed.
Total crypto open interest dipped slightly. Traders are closing positions before potential volatility hits.
