Cardano Foundation Dey Urge SEC to Put Digital Commodity Status Inside Official Rules

Cardano Foundation don join Stellar Development Foundation, Hedera, Aptos Labs, Ava Labs, and Chainlink Labs to ask di U.S. Securities and Exchange Commission to write im digital commodity classification inside binding rules.

Di joint letter propose four changes to Regulation Crypto Assets. Di request build on top di SEC March 17, 2026 interpretation, wey identify ADA among examples of digital commodities. Dem never adopt di proposed changes.

Moving Digital Commodity Status Into Rule Text

Di organizations support di SEC framework but dem point one gap: di digital commodity classification dey inside di explanatory preamble instead of di operative rules.

Dem propose to add one definition wey follow di March interpretation. E go connect digital commodity value to how one functional crypto system dey operate and to supply and demand, instead of people expectation of profits from other people essential managerial efforts.

Di definition go include assets wey dat interpretation don already identify, based on di assets characteristics and functions for dat time.

Another separate provision go confirm clearly say digital commodity no be security. E go also establish say to dey under one investment contract no dey turn di underlying asset itself to security.

Dat distinction dey separate di token from di arrangement wey dem use sell am. Fundraising transaction fit involve securities obligations while di underlying asset still keep im separate classification.

Clearer Treatment of Secondary Market Sales

Di second request concern sales by parties wey no be di issuer, like holders wey dey trade asset for secondary market.

Di coalition propose one presumption say these transactions no involve investment contract when no dey any outstanding issuer representations or promises of essential managerial efforts.

According to di letter, this one go give exchanges, custodians, and holders clearer framework wey tie to digital commodity status.

For assets wey di March interpretation identify, di organizations still ask di SEC to consider one category-wide exemption for transactions without to require Form TR filing. This still remain request for regulatory relief, subject to SEC consideration.

[NEWSBREAK]

Using Rule 400 Without Admitting Past Securities Status

Di third proposal address Rule 400, one voluntary process to establish say one crypto asset no dey under investment contract again.

Di organizations want make e sure say to use this process, including to file Form TR, no mean say person dey admit say investment contract dey or bin dey before. To choose no use am likewise no suppose create any presumption say one dey.

Dem fourth request ask di SEC to confirm say Regulation Crypto Assets dey preserve di March interpretation classifications and e no change di respective authorities of di SEC and CFTC.

For ADA, di letter dey find stronger regulatory footing for existing classification. E no dey request fresh classification decision. Di proposed Rule 400 language go also allow eligible parties to use di regulatory process without to concede say earlier transactions involve securities.