Galaxy Research Director: New SEC Rules Officially Mark the End of Gensler Era's Hostile Regulatory Stance on the Crypto Industry

According to Mars Finance, Alex Thorn, Head of Research at Galaxy Research, posted on the X social media platform that the U.S. Securities and Exchange Commission (SEC), in conjunction with the Commodity Futures Trading Commission (CFTC), released landmark guidance on the classification of digital assets this Tuesday. This guidance formally divides digital assets into five categories: digital commodities, digital collectibles, digital instruments, stablecoins, and digital securities (tokenized securities). It clarifies that only the last category constitutes a security and must be registered or exempted from registration under federal securities laws. This guidance, published in the Federal Register as an interpretative rule at the commission level, explicitly replaces the "investment contract" analysis framework used since the Gensler era in 2019 and provides two clear paths for tokens to shed their security attributes: first, if the issuer completes its promised core governance work, the investment contract terminates, and the token can be freely traded on the secondary market as a non-securities; second, if the issuer abandons the project or remains silent for an extended period, the investment contract also terminates. Furthermore, the guidance clarifies that airdrops, mining, and staking generally do not constitute securities transactions, and the sealing or unsealing of assets does not change their security attributes. Alex Thorn believes this guidance formally marks the end of the Gensler era's hostile regulatory stance towards the crypto industry, providing crucial clarity for institutional entry. However, he also cautions that interpretative rules are not legally binding and can be overturned by a new administration at any time, which is the core reason why the industry continues to push for the CLARITY Act.