What to know
- The U.S. SEC said most crypto assets are not securities and, together with the CFTC, classified several tokens as digital commodities.
- Analyst Chad Steingraber says the shift could mean crypto profits are taxed like commodities, typically under capital gains rules.
- If applied to derivatives markets, some crypto products could follow the “60/40 rule” used in commodity futures.
The U.S. Securities and Exchange Commission (SEC) has released a new interpretation clarifying how federal securities laws apply to certain cryptocurrency assets and transactions. In the statement, the agency acknowledged that most digital assets are not securities, a position that contrasts with the more aggressive regulatory approach taken under the previous administration.
The clarification also recognizes that certain investment contracts tied to crypto assets can eventually come to an end, meaning the underlying tokens themselves may not remain securities indefinitely.
The regulator, alongside the Commodities Futures Trading Commission (CFTC), identified a list of cryptocurrencies now considered digital commodities, including XRP, Ethereum, Solana, Cardano, Dogecoin, Avalanche, Aptos, Bitcoin Cash, Hedera, Algorand, Litecoin, Polkadot, Shiba Inu, Stellar, Tezos, and Chainlink.
The classification reflects coordination between the SEC and the CFTC, which oversees commodity markets in the United States.
Analyst Explains Potential Tax Implications
Following the announcement, crypto commentator Chad Steingraber explained how the new classification could affect taxation for investors holding these assets.
In a post on social media, Steingraber said that the new classification, cryptocurrencies like XRP, could be taxed under frameworks traditionally used for commodities such as oil, agricultural products, or precious metals. According to his explanation, commodities are generally taxed as capital assets, meaning profits from sales are subject to capital gains tax.
We have the official list of Digital Commodities from the SEC🔥
APT, AVAX, BTC, BCH, ADA, LINK, DOGE, ETH, HBAR, LTC, DOT, SHIB, SOL, XLM, XTZ and XRP.✅
Here’s how Commodities are taxed:
Commodities are generally taxed as capital assets, with futures contracts commonly… https://t.co/mLJKsnl6hV pic.twitter.com/W5FY2NJICk
— Chad Steingraber (@ChadSteingraber) March 17, 2026
Also Read: Top Analyst: ‘Majority of XRP Retail Will Crumble Before Expansion to $10’ – What it Means
The 60/40 Rule for Commodity Futures
Steingraber noted that commodity futures contracts often follow what is known as the 60/40 tax rule. Under this structure, 60% of profits are taxed as long-term capital gains and 40% as short-term gains, regardless of how long the asset was held.
This rule is commonly used in futures trading and could potentially apply to certain crypto derivatives if regulators formally treat digital assets as commodities within these markets.
How Commodity Investment Products Are Taxed
The analyst also pointed out that the tax treatment of commodity investment vehicles can vary depending on their structure. Exchange-traded funds (ETFs) that hold commodity futures often follow the 60/40 rule and typically report investor gains through specialized tax forms such as partnership filings.
Meanwhile, ETFs that hold physical commodities, such as gold or silver, are generally taxed under collectible rules, which can impose a maximum long-term capital gains rate of around 28%.
Exchange-traded notes (ETNs), on the other hand, are often treated as debt instruments. In these cases, short-term gains may be taxed as ordinary income while long-term gains may qualify for capital gains treatment.
Other Tax Considerations for Crypto Traders
Steingraber also highlighted several additional factors that could affect crypto investors if digital assets are broadly treated as commodities. One of these is mark-to-market accounting, a rule used in futures trading where unrealized gains or losses must be reported at the end of each tax year.
Another factor is loss treatment. Capital losses can generally offset capital gains and may also offset up to $3,000 of ordinary income annually, with remaining losses carried forward into future tax years.
A Potential Shift for Crypto Regulation
The SEC-CFTC classification could mark an important shift in how the U.S. government approaches digital asset regulation. If the classification becomes widely adopted across agencies, it could influence not only regulatory oversight but also how cryptocurrencies like XRP are taxed, traded, and integrated into traditional financial markets.
Also Read: Bhutan Moves $72 Million in Bitcoin as Holdings Strategy Shifts
