Six Blockchain Groups Urge SEC to Clarify Crypto Classification, Staking and Secondary Trading Rules
Six blockchain organizations are urging the U.S. Securities and Exchange Commission (SEC) to establish clearer rules for digital commodities, crypto staking and secondary-market trading, arguing that these issues should be addressed directly in the agency’s proposed Regulation Crypto Assets framework.
The joint letter was signed by Chainlink Labs, the Cardano Foundation, Hedera, Aptos Labs, Ava Labs and the Stellar Development Foundation. The groups want the SEC to move the classification of digital commodities beyond interpretive guidance and incorporate it into the proposed regulatory framework.
The appeal comes as the SEC’s public comment period on the proposal has concluded and the United Kingdom’s Financial Conduct Authority (FCA) has opened two consultations concerning decentralized finance (DeFi).
Blockchain Groups Seek Clearer Digital Commodity Rules
The six organizations argue that uncertainty over whether digital assets qualify as securities leaves developers and market participants without a clear understanding of when U.S. securities laws apply.
They are asking the SEC to formalize the digital commodity classification within its proposed rules rather than relying solely on interpretive guidance. The groups also want greater clarity on how securities laws apply to secondary-market transactions involving digital assets, staking and other activities associated with decentralized networks.
The letter builds on a joint SEC and Commodity Futures Trading Commission (CFTC) publication issued in March that divided crypto assets into five categories: digital commodities, digital collectibles, digital tools, stablecoins and digital securities.
That document also addressed protocol mining, protocol staking and the treatment of staking receipt tokens. The six organizations want these concepts incorporated into the legal framework to promote consistent interpretations and reduce regulatory uncertainty.
SEC Crypto Proposal Draws More Than 100 Comments
The SEC’s proposed Regulation Crypto Assets framework received more than 100 comments during the two months following its introduction in August. Responses came from cryptocurrency companies, industry associations and traditional financial institutions, with some groups supporting elements of the proposal while seeking changes to specific provisions.
The proposal would establish registration exemptions for certain token offerings. The exemptions outlined in the draft include startup offerings of up to $5 million and fundraising exemptions covering up to $75 million over a 12-month period.
The Hyperliquid Policy Center supported the proposal but called for changes to the treatment of airdrops. The organization argued that giveaways involving no consideration should not qualify as securities transactions.
The Alternative Investment Management Association sought revisions to clarify investors’ legal rights. Meanwhile, the Securities Industry and Financial Markets Association focused on a separate five-year innovation exemption that took effect in September and opened the door to onchain trading of tokenized stocks.
UK FCA Opens Two DeFi Regulatory Consultations
In a separate regulatory development, the UK Financial Conduct Authority opened two consultations on October 21, 2026, addressing how existing and evolving rules apply to decentralized finance and cryptoasset activities.
The first consultation, GC26/7, concerns guidance for regulated firms using decentralized finance. Its focus includes operational resilience, financial crime and compliance with the Money Laundering Regulations.
The second consultation, CP26/36, examines exclusions from cryptoasset regulation arising from legislative changes.
The FCA has indicated that its DeFi paper is intended to clarify existing rules and regulations rather than introduce new policy. Both consultations are scheduled to close on November 18, 2026, with final guidance planned for January 2027.
UK Cryptoasset Regulatory Framework Sets 2027 Timeline
The broader UK regime established under the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 is scheduled to take effect on October 25, 2027.
Firms were able to begin submitting applications on September 30, 2026, and have until February 28, 2027, to file. The consultation process will therefore precede the regime’s implementation, giving the FCA an opportunity to clarify how the rules should apply before the new framework takes effect.
While the SEC discussions focus on the classification of digital assets and the application of securities laws in the United States, the FCA consultations address the treatment of DeFi and cryptoasset activities under the UK regulatory system.
source: cryptopolitan
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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