[DigitalToday reporter Jinju Hong] The U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) have issued a joint interpretation classifying bitcoin, ether and XRP as assets that are not securities in principle.

CoinPost, a blockchain media outlet, reported on Monday that CFTC Commissioner Michael Selig unveiled a draft set of rules for crypto trading that includes the interpretation at a symposium at Fordham University School of Law in New York on Sunday.

The core proposal is to bring retail crypto trades involving margin, leverage or lending into a separate federal regulatory framework. The CFTC explained a plan to create a new registration category, a “crypto market,” for exchanges that handle only such trades. The CFTC also began seeking public comment on a regulatory framework for retail commodity trading that includes cryptocurrencies on the same day. The deadline for submissions is within 60 days of publication in the Federal Register.

Selig divided exchanges into three stages. He classified general spot exchanges as stage 1 under state money-transmission licensing rules, exchanges that offer retail trading with margin, leverage and lending as stage 2, and exchanges that handle derivatives such as perpetual futures as stage 3. The proposal targets stage 2 businesses. Among designated contract markets already registered with the CFTC, stage 3 businesses would be able to offer such trading under adjusted rules, while businesses not yet registered would be able to choose between a general designated contract market and the new registration category.

Selig said the framework is a federal option based on existing authority, not new legislation by Congress. “Exchanges can choose whether to opt for a state license or federal registration,” he said. “The only entity that can mandate registration for all exchanges is Congress,” he said. He also said Congress has already imposed a CFTC registration requirement on retail trading involving margin, leverage and lending, but the CFTC has responded primarily through enforcement without dedicated rules.

A focal point for markets in the plan is the standard for which cryptocurrencies could become subject to regulation. Citing the joint interpretation the CFTC and SEC compiled this year, Selig said three categories — digital commodities, digital collectibles and digital tools — do not qualify as securities in principle. As examples of digital commodities whose value is formed by programmatic operation or supply and demand, he cited bitcoin, ether, XRP, Solana, Stellar, Tezos.

The new registration category also includes controls for the listing stage. Exchanges must demonstrate at the time of listing that an asset is not vulnerable to price manipulation. The plan also includes imposing a proof-of-reserves requirement on exchanges that hold customer assets in omnibus accounts. This means federal regulators would examine both listing reviews and custody practices.

The plan also proposes clarifying crypto delivery standards in rules. Selig said that for “actual delivery” within 28 days, which is recognized as an exception to the on-exchange trading requirement under the Commodity Exchange Act, transferring cryptocurrency to a user’s external non-custodial wallet would, in principle, be interpreted as meeting the requirement. It means a structure in which users receive assets directly to a wallet outside the exchange would be treated as physical delivery under the system.

Against this backdrop, U.S. regulators suggested prioritising the overhaul of retail trading that combines leverage and lending, rather than bundling crypto spot trading itself into a blanket federal registration requirement. At the same time, by citing major cryptocurrencies such as bitcoin, ether and XRP as examples in the non-security category, they also set a baseline for future discussions on exchange registration, listing reviews and custody regulation.