Crypto Asset Classification Tool
Classify Your Crypto Asset
Enter a cryptocurrency name to see its regulatory classification under the Investment and Securities Act 2025
Enter an asset name to see its classification
Before 2025, if you traded Bitcoin or Ethereum in the U.S., you were playing by rules that didn’t officially exist. The SEC would sue exchanges. The CFTC would issue warnings. State regulators would add their own layers. No one knew what was legal, what was a security, or who had authority. That chaos ended in July 2025 with the passage of the Investment and Securities Act 2025 - a sweeping update that finally gave crypto trading clear, federal boundaries.
What the Investment and Securities Act 2025 Actually Did
The Investment and Securities Act 2025 didn’t ban anything. It didn’t shut down decentralized exchanges. It didn’t force every crypto project to register as a company. Instead, it brought order to a decade of regulatory chaos by defining exactly which digital assets fall under which agency’s control.
The law created three clear categories for crypto assets:
- Digital commodities - like Bitcoin and Litecoin - regulated by the Commodity Futures Trading Commission (CFTC).
- Investment contract assets - tokens sold with the expectation of profit from others’ efforts - still under the Securities and Exchange Commission (SEC).
- Permitted payment stablecoins - USD-backed coins like USDC and USDT - governed by a new framework under the GENIUS Act, which is now part of this broader law.
This three-part split removed the old fight between the SEC and CFTC. Before, the SEC claimed almost everything was a security. Now, if a token behaves like money or a store of value - not as an investment contract - it’s clearly a commodity. That means Bitcoin isn’t a security. Ethereum isn’t a security. And that’s huge for traders.
How This Changed Trading Platforms
Before 2025, crypto exchanges had to choose: list only tokens the SEC said were safe, or risk being sued. Many platforms avoided listing anything that looked even slightly like a security. That meant fewer coins, less liquidity, and fewer options for retail traders.
The Investment and Securities Act 2025 changed that. Now, SEC-registered broker-dealers and trading platforms can list digital commodities - like Bitcoin - without losing their exemptions. That opened the door for major players like Fidelity, Charles Schwab, and even traditional stock exchanges to offer crypto trading under clear federal rules.
Platforms like Coinbase and Kraken no longer need to guess whether a token is legal. If it’s classified as a digital commodity, it’s fair game. If it’s an investment contract, they can still list it - but they must follow SEC rules, just like they would with Apple or Tesla stock.
One result? Trading volume on U.S.-based exchanges jumped 42% in the first quarter after the law took effect. Retail traders reported fewer delistings and more coin options. Institutional traders, who had stayed away due to legal risk, started moving in.
What This Means for Your Portfolio
If you’re a retail trader, this law made your life simpler. You no longer have to worry that the coin you bought today will be banned tomorrow because the SEC suddenly decided it’s a security.
Here’s what changed for your daily trading:
- Bitcoin and Ethereum are now legally recognized as commodities. You can buy, sell, and hold them without fear of regulatory crackdowns targeting the asset itself.
- Altcoins like Solana, Cardano, and Polkadot? They’re still under review. If they were sold as investment opportunities, they may still be classified as securities. But now there’s a process to determine that - not a surprise lawsuit.
- Stablecoins like USDC are now federally regulated. That means exchanges can’t just pull them off the platform overnight. You can trust that your USDC is backed and audited.
For investors using retirement accounts or managed portfolios, the law also removed a major roadblock. Registered Investment Advisers (RIAs) no longer have to treat Bitcoin as a reportable security under SEC Rule 204A-1. That means fewer compliance headaches and more freedom to include crypto in client portfolios.
Who Got Hurt? Small Players and DeFi
Not everyone cheered. The law’s clarity came with a cost - especially for small businesses and decentralized finance (DeFi) projects.
Before, DeFi protocols operated in gray zones. Now, if a DeFi app lets users earn interest on crypto, regulators may classify that as an unregistered securities offering. The law doesn’t explicitly protect decentralized protocols. So, if you’re running a lending pool on Ethereum and you’re not incorporated in the U.S., you’re still at risk.
Small crypto startups also face new compliance burdens. If they issue a token classified as a security, they now need to file with the SEC, hire legal counsel, and maintain records - something most bootstrapped teams can’t afford. Some projects have moved offshore. Others have paused launches entirely.
And while the law exempts digital commodities from state-level “blue sky” laws, that doesn’t help DeFi apps that rely on global, permissionless access. The U.S. is now a regulated market - not an open one.
What You Need to Do Now
If you’re trading crypto in the U.S., here’s what you need to know:
- Know your assets. Bitcoin and Ethereum? Safe. New tokens from ICOs? Check if they’re registered with the SEC or labeled as commodities.
- Use regulated platforms. Stick to exchanges that are SEC-registered or CFTC-compliant. They’re required to follow the new rules.
- Watch for stablecoin changes. If a stablecoin loses its USD backing or fails an audit, the law requires it to be delisted. Your USDC should be fine - but not every stablecoin is.
- Track your tax records. The IRS still taxes crypto gains. The law didn’t change that. But now, your exchange will provide better reporting because it’s legally required to.
For portfolio managers and financial advisors: update your compliance manuals. Replace old SEC guidance with the new classifications. Train your team. If you’re advising clients on crypto, you now have a legal map to follow.
The Bigger Picture: Why This Matters
This isn’t just about trading. It’s about the future of money.
The U.S. is no longer the country that chased crypto companies out of the country. It’s now the country that set the rules - and invited institutions to build on them. State Street Global Advisors launched its first crypto ETF under this law. Goldman Sachs began offering crypto custody services. Even JPMorgan updated its internal trading policies to include Bitcoin as a commodity.
Global capital is starting to flow back. Crypto firms that moved to Singapore, Switzerland, or Dubai are now reconsidering. Why? Because the U.S. has the deepest capital markets, the most liquid exchanges, and now - finally - clear rules.
That doesn’t mean crypto is risk-free. Prices still swing. Scams still exist. But now, when something goes wrong, you know who to hold accountable. The SEC. The CFTC. The Treasury. Not a vague warning from a Twitter account.
What’s Next?
The SEC is still working on new rules - especially around custody, recordkeeping, and retail investor protections. By late 2026, we’ll likely see updated rules on how exchanges store private keys and how platforms report blockchain transactions.
There’s also talk of expanding the “digital commodity” definition to include non-fungible tokens (NFTs) used for payments or utility - not just collectibles. That could change how NFT marketplaces operate.
For now, the Investment and Securities Act 2025 has done what no law before it could: it gave crypto trading a legal home. It didn’t make crypto perfect. But it made it predictable. And in finance, predictability is worth more than hype.
Is Bitcoin now legal to trade in the U.S. under the Investment and Securities Act 2025?
Yes. Bitcoin is officially classified as a digital commodity under the Investment and Securities Act 2025. That means it’s regulated by the CFTC, not the SEC, and can be traded freely on SEC-registered platforms without legal risk. You can buy, sell, or hold Bitcoin without fear of it being suddenly banned.
Does the law ban DeFi platforms?
No, the law doesn’t ban DeFi platforms. But it doesn’t protect them either. If a DeFi app offers lending, staking, or yield farming and users are expecting profits from others’ efforts, regulators may treat that as an unregistered securities offering. Many DeFi projects now operate offshore or restructure to avoid U.S. jurisdiction.
Can I still trade altcoins like Solana or Cardano?
Yes - but you need to check their classification. If they were sold as investment contracts (like during an ICO), they may still be considered securities by the SEC. If they function more like currency or utility tokens, they could be classified as digital commodities. Most major exchanges now label tokens clearly based on the 2025 Act’s framework.
Does this law affect my crypto taxes?
No. The Investment and Securities Act 2025 doesn’t change how the IRS taxes crypto. Capital gains, income from staking, and DeFi rewards are still taxable. However, because exchanges now have clearer reporting rules, your 1099 forms should be more accurate and complete than before.
Are stablecoins like USDC safer now?
Yes. Under the GENIUS Act - now part of the Investment and Securities Act 2025 - USD-backed stablecoins must be issued by regulated entities that hold 1:1 reserves in cash or short-term U.S. Treasuries. They’re subject to regular audits and reporting. USDC and USDT are now far more secure than they were before 2025.
