Six blockchain organizations have formally requested that the U.S. Securities and Exchange Commission (SEC) codify the definition of a “digital commodity” into the binding text of its proposed Regulation Crypto Assets rule, rather than relying on less formal guidance. The joint comment letter, submitted on October 20, 2026, aims to provide long-term regulatory certainty for the digital asset industry.
The organizations, representing the development teams behind tokens such as APT, AVAX, ADA, LINK, HBAR, and XLM, argue that placing the definition within the operative text of the rule, rather than in guidance documents or footnotes, would offer greater legal stability. This distinction is significant because operative rule text carries more legal weight and is more difficult to alter than guidance, which can be subject to reinterpretation or withdrawal with less formal process.
According to the joint comment letter, codifying the definition would prevent the status of a token from depending on how future officials interpret informal guidance. The groups contend that establishing lasting regulatory foundations within U.S. law is crucial for maintaining the country’s attractiveness for digital asset innovation. This push comes in the wake of increased confusion in the crypto sector, partly fueled by enforcement actions against major players like Binance and Coinbase, and the SEC’s own guidance issued on March 17, 2026, which referenced some of these tokens in a footnote connecting them to Commodity Futures Trading Commission (CFTC)-regulated futures.
Ripple also submitted a separate comment letter on the same date, supporting the general effort to refine existing classifications. However, Ripple’s letter reportedly focused on specific classification refinements rather than challenging the broader rulemaking framework.
The core rationale behind the request is that a commodity classification would place a token outside the SEC’s securities framework. This is a desirable outcome for token issuers seeking to avoid the stringent regulations associated with securities.
Despite the organized advocacy, the outcome remains uncertain. The SEC is not obligated to adopt the coalition’s proposed language, and the final text of the Regulation Crypto Assets rule could differ significantly from the proposal. The comment letters represent requests from the industry, and the SEC will ultimately decide the content and legal standing of the final regulation. The public comment period for the proposed rule formally closed on October 20, 2026, though the SEC may continue to accept feedback.
For holders of tokens like ADA, the submission of this letter does not alter the token’s current legal status. It serves as a formal record of the Cardano Foundation and other organizations requesting a more robust legal footing for the commodity framework than what a footnote in guidance can provide.
Why This Matters
The materials describe a narrow update: Six blockchain organizations submitted a joint comment letter to the SEC on October 20, 2026, requesting that the definition of a ‘digital commodity’ be included in the operative text of the proposed Regulation Crypto Assets rule, rather than remaining in less binding guidance. Whether the SEC will adopt the coalition’s language for the ‘digital commodity’ definition.
Broader Context
Source materials place the factual news in this context: The SEC oversees securities, while the CFTC oversees commodity derivatives.
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