SEC & CFTC Declares Most Crypto Not Securities
Crypto ETF Adoption Still Advisor-Shy | Aster Mainnets Privacy-First Perps Chain
Marco Manoppo & Karon Pangestu
March 18, 2026
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Good Morning.
The SEC and CFTC jointly released a 68-page guidance declaring most cryptocurrencies are not securities, the biggest regulatory pivot in US crypto policy in over a decade and a direct reversal of the Gensler-era enforcement-first approach.
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In Today's Email:
What Matters: SEC & CFTC Declares Most Crypto Not Securities 👀
Case Study: Crypto ETF Adoption Still Advisor-Shy 🔎
Governance & Features: TradFi goes onchain 🚀
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Narratives: TradFi goes onchain
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WHAT MATTERS
SEC & CFTC Declares Most Crypto Not Securities
State of play: The SEC and CFTC jointly released a 68-page guidance marking the clearest shift in US digital asset policy in over a decade, formally breaking from the Gensler-era enforcement-first approach that treated most tokens as securities.
New token taxonomy covers stablecoins, digital commodities, and "digital tools," none of which qualify as securities.
Mining, protocol staking, and airdrops now have explicit regulatory guidance for the first time.
A non-security asset can still become a security if issuers make profit-dependent promises tied to managerial effort.
Digital collectibles tied to trading cards or current events also fall outside securities law.
Guidance is rooted in the Howey Test but draws clearer lines than any prior SEC interpretation.
Why it matters: After a decade of legal ambiguity, this is the first time US regulators have affirmatively said most crypto isn't a security, shifting the burden of proof away from builders and toward specific bad actors.
Our take: Atkins is doing exactly what he said he would, taxonomy first, enforcement second. The "non-security becoming a security" carve-out keeps teeth in the law without making every token guilty by default.
For builders and investors: Token issuers now have a clearer framework to assess whether their asset needs securities compliance. DeFi protocols operating purely on-chain are likely in the clear.
Watch for follow-up rulemaking that operationalizes this taxonomy into enforceable standards.
CASE STUDY
Crypto ETF Adoption Still Advisor-Shy
Most crypto ETF demand is still coming from self-directed investors, not financial advisors, with Morgan Stanley reporting 80% of its platform activity from self-directed accounts despite opening bitcoin ETF access in 2024.
Major brokerages only started allowing advisors to place crypto ETFs in client portfolios in late 2025.
Advisors are only beginning to formalize crypto allocations, with most institutions landing in the 1% to 4% range depending on risk tolerance.
Morgan Stanley, Bank of America, BlackRock, and Fidelity have all published similar guidance bands, signaling emerging consensus on sizing.
Bitwise CIO Matt Hougan noted some professional investors are now eyeing allocations closer to 5%, up from earlier 1% recommendations.
Panelists flagged tokenized assets and 24/7 blockchain-based settlement as the next frontier beyond ETFs.
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INSIGHTS
State of play: Hyperliquid's HIP-3 markets hit a record $1.43B in open interest, a 100x jump in just six months, driven almost entirely by tokenized traditional assets trading around the clock.
Of the top 30 markets on trade.xyz, only 7 are crypto pairs, with the rest covering equity futures, S&P 500, Nasdaq, and commodities.
Trade.xyz, built by Hyperunit, controls nearly 90% of all HIP-3 OI with $22B in daily volume.
The 24/7 availability is the core differentiator, giving traders price discovery on equities and commodities during weekends and off-hours.
HYPE is up over 50% YTD while Bitcoin is down roughly 15% in the same period.
HIP-4 is in the pipeline, enabling permissionless prediction market listings as the next growth vector.
FEATURES & GOVERNANCE UPDATE
Aster Mainnets Privacy-First Perps Chain
Aster launched its native L1 with ZK encryption and stealth addresses to shield trader activity, targeting CEX-level performance with 50ms block times, 100K TPS, and zero gas costs.
Transactions settle and remain verifiable onchain, but wallet addresses cannot be linked to individual trades by default.
A "viewer pass" mechanism lets users selectively decrypt their activity for audits or counterparties.
Cross-chain deposits supported at launch across BNB Chain, Arbitrum, Ethereum, and Solana.
ASTER token rallied up to 8% on the announcement, currently trading at $0.76, up over 5% on the day.
Public staking for ASTER holders and an Aster Code partners program are rolling out in phases this week.
Other notable feature updates:
Sonic Labs launches USSD.
Lido launched two simplified vaults.
Hyperliquid deployed HIP-4 on testnet.
Pendle introduced a one-click PT looping feature.
Aave DAO cuts annual AAVE buyback budget by 40%.
Theo opened the thUSD Genesis vault with a $100M cap.
Across Protocol proposed transitioning from a DAO to a US C-corp.
QUICK BITES
Tally is winding down.
PayPal expands PYUSD access to 70 markets.
Hyperliquid’s HIP-3 markets hit $1.43B open interest.
OpenSea delays SEA token launch, offers no new date.
TD Cowen says crypto bill faces potential delay to 2027.
Hong Kong's RedotPay eyes $150M raise ahead of US IPO.
Messari CEO steps down alongside mass layoffs in AI pivot.
Morgan Stanley exec says crypto ETF adoption still 'very early.'
GSR expands into token lifecycle management with $57M acquisition.
Mastercard to acquire stablecoin infrastructure firm BVNK for up to $1.8B.
SEC & CFTC unveil guidance declaring most digital assets are not securities.
ASTER rallies as privacy-preserving native blockchain powering DEX mainnets.
NOTEWORTHY READS & MEME
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