 | - Digital Commodities Categorized as Non-Securities: The SEC references its formal 2026 taxonomy classifying digital assets into five categories and expressly affirms that digital commodities are not themselves securities.
- Distinction Between Tokens and Securities: The proposal clarifies that the "security" is strictly the overlying investment contract (the capital-raising scheme or promises) rather than the underlying crypto asset itself.
- Network Maintenance Is Not "Managerial Effort": The document states that once a blockchain is functional, ongoing work by developers, miners, or validators to secure, improve, or operate the network does not constitute "essential managerial efforts" under the Howey test, as asset value is driven by programmatic operation and market supply/demand.
- Affirmation of Proof-of-Work Mining: The release references SEC guidance specifically recognizing Proof-of-Work mining activities as non-securities transactions.
- Lack of Central Issuer or Enterprise Promises: The SEC establishes that an investment contract requires an issuer making commitments to generate profits, a standard that does not apply to decentralized, mineable networks without a central fundraising issuer like BCH.
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