SEC and CFTC Define Most Decentralized Tokens as Digital Commodities

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have jointly issued Interpretive Release 33-11412, classifying most native tokens of decentralized networks as digital commodities. According to PANews, the release clarifies that staking, liquid staking derivatives (LSD), wrapped tokens, and compliant airdrops do not constitute securities offerings. The article introduces three innovative fundraising and treasury models that were previously challenging to implement. The first model, Liquid Genesis Staking Pools (LGSP), is based on staking assets like ETH and SOL, offering dual incentives through LSD yields and protocol tokens. The second model, Commodity Pre-Participation Agreements (CPA), allows participants to exchange work and funds for future network participation rights instead of pre-sale tokens. The third model, Separation-Accelerated Revenue Rights (SARR), ties revenue sharing to decentralized milestones, using the "separation principle" to drive teams towards accelerated decentralization. The author notes that all three models are built on existing contract components and, in simulations, can support long-term protocol treasuries and team expenditures.