SKN | Chainlink, Cardano and Four Blockchain Groups Urge SEC to Clarify Crypto Rules

Key Points

•  Chainlink Labs, the Cardano Foundation, Hedera, Aptos Labs, Ava Labs and the Stellar Development Foundation urged the SEC to explicitly classify digital commodities as non-securities.
• A joint letter argues that interpretive guidance alone may leave developers and market participants uncertain about the application of securities laws.
•  The organizations also requested clarity on secondary-market transactions and activities associated with decentralized blockchain networks.

Blockchain Groups Press SEC for Explicit Digital Commodity Rules

Six major blockchain organizations are pressing the US Securities and Exchange Commission (SEC) to establish clearer boundaries between digital commodities and securities as the agency advances its proposed cryptocurrency regulatory framework.

In a joint letter dated October 20, Chainlink Labs, the Cardano Foundation, Hedera, Aptos Labs, Ava Labs and the Stellar Development Foundation called on the SEC to incorporate the classification of digital commodities directly into its proposed Regulation Crypto Assets framework.

The organizations argue that recognizing digital commodities as a distinct category through interpretive guidance is not sufficient to eliminate uncertainty. They want the distinction formally reflected in the proposed rules, providing market participants with a clearer basis for determining which securities regulations apply to their activities.

The request comes as the SEC’s public consultation on the proposed framework closes, placing the treatment of blockchain-based assets among the central questions facing US digital asset regulation.

Industry Seeks Greater Legal Certainty

The joint letter highlights a gap between the SEC’s existing interpretation of digital commodities and the language of its proposed regulatory framework.

According to the organizations, the agency’s interpretation recognizes digital commodities as a separate category, but the proposed rules do not explicitly incorporate that distinction. They argue that this omission could leave developers, blockchain foundations and other market participants uncertain about their regulatory obligations.

Formal recognition within the framework could provide a more durable basis for distinguishing assets that fall outside securities regulation from those subject to securities laws. For blockchain projects, the classification can influence how tokens are issued, traded and used within decentralized networks.

The organizations’ request also reflects a broader industry concern: regulatory clarity depends not only on the positions regulators communicate but also on how those positions are reflected in formal rules.

However, the letter represents the participating organizations’ position rather than an adopted SEC policy. The agency has not, in the supplied report, announced whether it will incorporate their requested changes.

Secondary Trading and Staking Under Scrutiny

Beyond the classification of digital commodities, the organizations are seeking clearer guidance on the application of securities laws to secondary-market transactions involving digital assets.

Secondary-market activity is particularly relevant to blockchain ecosystems, where tokens may trade among investors independently of their original issuance. Greater clarity could help market participants assess the regulatory treatment of those transactions.

The letter also addresses staking and other activities associated with decentralized blockchain networks. Staking can play a role in transaction validation and network security, but its regulatory treatment remains an important consideration for blockchain developers and service providers.

For networks such as Cardano, Chainlink-connected ecosystems and other decentralized platforms, the distinction between the underlying digital asset and activities involving that asset can affect how projects structure their operations and services.

The groups are therefore seeking a framework that addresses not only token classifications but also the activities surrounding digital assets in active markets.

SEC Framework Draws Competing Views

The SEC introduced its proposed crypto framework in August, opening a 60-day public consultation that attracted approximately 140 comments, according to the report.

Industry participants and legal scholars have expressed competing views on elements of the proposal, including exemptions for certain cryptocurrency offerings and a conditional safe harbor for selected tokens.

The consultation reflects the challenge of establishing rules for a market in which digital assets serve different functions, from investment instruments to network utility and transaction validation.

The six organizations’ letter adds pressure for the SEC to make the distinction between securities and digital commodities explicit in the regulatory text. Whether the agency adopts that approach could influence the compliance expectations facing blockchain projects and other participants in the US market.

Outlook

The next stage will depend on how the SEC responds to public feedback and whether it incorporates clearer digital commodity definitions into the final framework. Formal recognition could reduce uncertainty for blockchain developers and market participants, while unresolved questions around secondary trading and staking may continue to shape legal and operational decisions. For the industry, the key outcome will be whether the final rules provide enforceable distinctions rather than relying primarily on interpretive guidance.