SEC declares most crypto assets aren't securities as regulatory clarity finally arrives

The crypto industry received its most significant regulatory clarity in years as the SEC and CFTC jointly released guidance declaring that most digital assets are not securities. [The Block](https://www.theblock.co/post/394018/sec-cftc-crypto-guidance-declaring-most-digital-assets-are-not-securities) reported the SEC established four non-security crypto categories: digital commodities, collectibles, tools, and payment stablecoins, with only tokenized traditional securities remaining under SEC jurisdiction. The guidance clarifies that most L1 tokens are digital commodities, protocol staking and liquid staking derivatives are treated as administrative (not securities), and wrapped tokens plus qualifying airdrops are cleared. However, [defiprime](https://t.me/defiprime/10573) notes this remains interpretive guidance only—not binding law—with restaking untouched and public comments still being solicited. Elsewhere, regulatory friction persists. [The Block](https://www.theblock.co/post/394056/uk-lawmakers-urge-ban-crypto-political-donations) reports UK lawmakers are calling for an immediate ban on crypto political donations, citing high risks and proposing a binding moratorium. In the U.S., Arizona's Attorney General has charged prediction market Kalshi with illegal betting as state-level battles widen, according to [The Block](https://www.theblock.co/post/393990/arizona-ag-charges-kalshi-with-illegal-betting-as-state-battles-widen). Kenya is seeking public comments on draft 2026 VASP rules covering licensing requirements and stablecoin backing, while Argentina has ordered a nationwide block of Polymarket citing unauthorized gambling concerns.

link">Bitcoin continues to show resilience amid escalating geopolitical tensions, with [The Block](https://www.theblock.co/post/394044/bitcoin-etfs-inflow-seven-day-streak) reporting Bitcoin ETFs posting their longest inflow streak in five months, signaling "institutional conviction is back." CryptoQuant analysis suggests the rally could face resistance between $75,000 and $85,000, according to [The Block](https://www.theblock.co/post/394015/cryptoquant-bitcoin-rally-resistance-between-75000-and-85000). The broader macro environment remains dominated by Iran war tensions driving oil volatility. [Empire (Blockworks)](https://www.youtube.com/watch?v=91up0VxYeNw) featured Bob Elliott discussing how the oil shock fits into today's fragile, savings-driven economy, with markets potentially underestimating second-order effects. [Wintermute](https://t.me/shoalresearch/13445) noted Brent crude up 26% this week, forcing markets to reprice to just one Fed cut in 2026 amid energy-driven inflation risks. Crypto has notably outperformed major asset classes during this period, with BTC posting modest gains while equities, bonds, and gold sold off. Meanwhile, sovereign Bitcoin adoption continues as [The Block](https://www.theblock.co/post/394078/bhutan-moves-72-million-bitcoin) reports Bhutan has moved over $72 million in bitcoin, bringing total transfers this year to more than $110 million according to Arkham Intelligence.

The link">Ethereum Foundation's new mandate has sparked intense community debate over the network's strategic direction. [Bankless](https://www.youtube.com/watch?v=UpSP2j3WoWw) explored how the foundation's emphasis on CROPS (Censorship Resistance, Openness, Permissionlessness, Self-sovereignty) has divided the community between those favoring laser focus on cypherpunk values versus those pushing for adoption and market share growth. The debate reflects Ethereum's fundamental tension between maintaining its philosophical core and competing in an increasingly competitive L1 landscape. On the infrastructure side, significant developments are reshaping the ecosystem. [The Block](https://www.theblock.co/post/394026/ethereum-governance-solution-tally-uniswap-arbitrum-others-winding-down) reports that Tally, the governance solution used by Uniswap, Arbitrum and other major protocols, is winding down after five years. [Shoal Research Hub](https://t.me/shoalresearch/13451) noted Tally concluded "there isn't a venture-backed business in governance tooling for decentralized protocols, at least not yet," highlighting the challenges of monetizing critical infrastructure. Positive developments include Injective adding native USDC support via Circle, which [The Block](https://www.theblock.co/post/393956/injective-support-native-usdc-cross-chain-transfers-circle) notes could give traders and DeFi apps a mainstream dollar-denominated asset for collateral, liquidity and settlement. The integration represents broader momentum toward bridging traditional finance rails with DeFi protocols.

link">Hyperliquid is emerging as a standout performer in the derivatives space, with [The Block](https://www.theblock.co/post/393810/hyperliquid-hip-3-markets-1-43-billion-open-interest-24-7-trading-tokenized-equities-commodities) reporting HIP-3 markets hitting $1.43 billion in open interest fueled by 24/7 tokenized equities and commodities trading. [Tokenomist Research](https://insights.unlocks.app/weekly-token-unlocks-digest-mar-16-22-2026-zro-unlock-in-focus/) noted HYPE token was the week's standout performer, surging 26% and outperforming Bitcoin by several percentage points as the platform continues gaining traction. Stablecoin infrastructure is seeing major consolidation as [Shoal Research Hub](https://t.me/shoalresearch/13450) reports Mastercard is acquiring stablecoin infrastructure startup BVNK for up to $1.8 billion, just four months after BVNK's $2 billion deal with Coinbase fell through. This represents traditional finance's continued push into crypto rails. Meanwhile, [The Block](https://www.theblock.co/post/394045/transfi-raises-19-million) reports stablecoin payments firm TransFi raised $19 million for global expansion across emerging markets. In the derivatives market, Phantom secured CFTC no-action relief allowing users to access regulated derivatives markets without broker registration, as reported by [Shoal Research Hub](https://t.me/shoalresearch/13452). The development represents growing regulatory acceptance of crypto-native infrastructure accessing traditional finance products.

The intersection of AI and crypto is accelerating across multiple vectors. [Shoal Research Hub](https://t.me/shoalresearch/13458) shared Andrew Yang's stark prediction about AI's impact on white-collar work, warning that millions of office workers will be "kicked to the curb" in the next 12-18 months as companies compete to automate roles that "consist of processing information and then presenting it for decision." This automation wave could have profound implications for crypto adoption as traditional employment models break down. Meanwhile, Messari is pivoting hard into AI, with [Shoal Research Hub](https://t.me/shoalresearch/13457) reporting CEO Eric Turner stepping down alongside mass layoffs as the company refocuses on becoming "AI-first." The move reflects broader industry recognition that AI will reshape crypto analytics and research. On the infrastructure side, [Shoal Research Hub](https://t.me/shoalresearch/13455) notes OpenAI launched GPT-5.4 Mini and Nano models, with the Mini version improving coding, reasoning, and multimodal understanding while running 2x faster. Tether's QVAC division launched what they claim is the world's first cross-platform BitNet LoRA framework to enable billion-parameter AI training on consumer hardware. Additionally, Sam Altman's World released an AgentKit with Coinbase integration, allowing AI agents to prove human backing via Coinbase's x402 protocol.

Self-custody solutions are seeing strong adoption as hardware wallet link">maker Tangem reported more than $60 million in revenue for 2025, marking a 102% year-over-year increase, according to [The Block](https://www.theblock.co/post/394087/wallet-maker-tangem-doubles-annual-revenue-to-more-than-60-million-as-self-custody-shifts-toward-active-use). The growth reflects rising demand for hybrid cold storage solutions as users shift toward more "active" self-custody practices. Credit analysis is moving onchain as [The Block](https://www.theblock.co/post/394075/moodys-takes-credit-analysis-onchain) reports Moody's launched its Token Integration Engine to bring credit analysis onchain, starting with Canton Network. The development represents traditional finance infrastructure increasingly native to blockchain rails. However, the infrastructure sector faces challenges. GSR announced $57 million in acquisitions of Autonomous and Architech to build an integrated capital markets platform, while Hong Kong's RedotPay is reportedly seeking $150 million ahead of a US IPO. The moves suggest consolidation pressures as infrastructure players seek scale amid competitive dynamics.