SEC Digital Commodity Rule: Chainlink, Cardano, and Hedera Petition for Rule Text

The debate over how US regulators classify cryptocurrencies has reached another important stage.

Six blockchain organizations, including Chainlink Labs and the Cardano Foundation, are asking the Securities and Exchange Commission (SEC) to put its digital commodity definition directly into its proposed crypto rulebook.

Their request centers on a practical concern: clear guidance is useful, but binding rules could offer developers, exchanges and investors greater certainty about how digital assets are regulated.

Key Takeaways

• Six blockchain organizations want the SEC to include its digital commodity definition in binding rule text.

• The request covers token classification, secondary market transactions, staking and regulatory certainty.

• The SEC must consider the request alongside other public comments before deciding on its final rules.

Why Six Blockchain Groups Want a Formal SEC Rule

Source: @Cointelegraph on X

On October 20, Chainlink Labs, the Cardano Foundation, Hedera, Aptos Labs, Ava Labs and the Stellar Development Foundation submitted a joint comment letter to the SEC.

The organizations want the agency to formally establish the definition of a digital commodity, including its non security status, within the operative text of its proposed Regulation Crypto Assets framework.

Their concern is that the current definition appears in the proposal’s preamble rather than the actual rule.

While a preamble explains an agency’s reasoning, it does not provide the same legal foundation as binding regulatory text.

The groups argue that relying on interpretive language leaves blockchain developers and other market participants uncertain about how securities laws may apply.

The letter also seeks clearer treatment of secondary market transactions and staking activities connected with decentralized networks.

These issues matter because token classification can influence how projects, exchanges and participants approach regulatory obligations.

What the SEC’s Digital Commodity Definition Means

The SEC and Commodity Futures Trading Commission issued a joint interpretive document on March 17, 2026, outlining how securities law principles apply to crypto assets.

It organizes assets into five categories: digital commodities, digital collectibles, digital tools, stablecoins and digital securities.

A digital commodity derives value from the programmatic operation of a crypto system and supply and demand, rather than from the managerial efforts of others.

The interpretation also identifies examples of digital assets associated with CFTC regulated futures markets.

These include APT, AVAX, ADA, LINK, HBAR and XLM, which correspond to the native tokens connected with the six organizations behind the letter.

However, classification does not settle every legal question.

A token that is not itself a security can still be sold through an investment contract, and that particular transaction may remain subject to securities laws.

This distinction is central to the discussion around crypto securities versus commodities.

How Regulation Crypto Assets Could Change the Picture

The SEC proposed Regulation Crypto Assets in August 2026. The proposal drew roughly 140 public comments during a 60 day consultation period, reflecting different views on how crypto offerings should be regulated.

The framework includes a proposed conditional safe harbor and exemptions for certain fundraising activities.

The startup exemption would cover up to $5 million over four years, while a fundraising exemption would cover up to $75 million in a 12 month period.

The proposal also addresses certain state registration requirements. Yet these measures do not necessarily resolve the underlying classification issue raised by the six organizations.

They argue that the rules should clearly establish which assets qualify as digital commodities, rather than leaving that definition dependent on interpretive guidance.

For readers following crypto regulation in 2026, regulatory developments are worth monitoring alongside market activity.

Platforms such as Bitrue offer a place to explore crypto trading features, but understanding a token’s regulatory status remains a separate and important part of making informed decisions.

You can register with Bitrue to explore its available features, while remembering that all crypto trading carries risk and no platform can eliminate market losses.

Why the Request Matters for LINK, ADA, HBAR, APT, AVAX and XLM

The six organizations have a direct interest in how the SEC defines digital commodities.

Their associated tokens, LINK, ADA, HBAR, APT, AVAX and XLM, are already named in the agency’s interpretive guidance.

Their concern is whether that treatment will remain dependable over time.

The coalition argues that including the definition in a final rule would make it harder to change without a formal rulemaking process.

By contrast, interpretive guidance could be revised or withdrawn by future SEC leadership. The request comes amid wider uncertainty over US crypto market structure legislation.

The proposed CLARITY Act has faced delays in Congress, while the CFTC has opened a separate process concerning retail crypto transactions. Neither development guarantees a quick resolution.

For blockchain projects and market participants, a binding definition could make regulatory planning more predictable.

However, it would not automatically exempt every token sale or related activity from securities laws.

What Happens After the SEC Consultation?

The SEC must consider the coalition’s letter alongside the other public comments before deciding how to proceed.

As of the request described here, the agency has not confirmed whether it will incorporate the digital commodity definition into the operative text of its final rule.

The next step to watch is a revised proposal or final regulation that addresses token classification directly.

The timing and final wording remain uncertain, and the outcome could affect how projects interpret their obligations.

Market participants should also distinguish between an asset appearing in regulatory guidance and receiving a permanent legal classification.

The former does not eliminate every potential compliance issue.

Clearer rules could help, but the precise effect will depend on the final language and how it applies to particular transactions and activities.

Conclusion

The six blockchain organizations are asking the SEC to turn its digital commodity definition into binding regulatory text, rather than leaving it in interpretive guidance.

Their request highlights continuing questions about token classification, staking and secondary market transactions in the United States.

Whether the SEC adopts this change remains to be seen, so market participants should follow official updates and avoid treating proposed rules as settled law.

For those exploring digital assets, Bitrue provides a platform for buying, selling and trading Bitcoin and altcoins.

FAQ

What is the SEC digital commodity rule?

It refers to the regulatory approach for defining digital commodities and distinguishing them from securities under the SEC’s proposed Regulation Crypto Assets framework.

Which organizations petitioned the SEC?

Chainlink Labs, the Cardano Foundation, Hedera, Aptos Labs, Ava Labs and the Stellar Development Foundation submitted the joint letter.

Which tokens are associated with the six organizations?

The tokens named in the SEC’s interpretive guidance include LINK, ADA, HBAR, APT, AVAX and XLM.

Does being classified as a digital commodity mean a token sale is always exempt from securities laws?

No. A token that is not itself a security may still be sold through an investment contract, making that transaction subject to securities laws.

Has the SEC agreed to the requested change?

The request does not confirm that the SEC has accepted it. The agency must consider the public comments before determining the final rule’s wording.

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