SEC classifies Bitcoin and Ethereum as commodities. A game changer?

Historic decision for the crypto market

On March 17, 2026, the SEC and CFTC jointly classified Bitcoin, Ethereum, XRP, and Solana as digital commodities under CFTC jurisdiction. This is the most significant regulatory action in U.S. crypto history.

What it means in practice

Classification as a commodity (not a security) means less restrictive regulation. CFTC oversees commodity markets, which is more favorable for the crypto industry than SEC oversight.

For traders: More regulated derivative products (futures, options), greater institutional trust, potentially tighter spreads.

For prop trading firms: Companies like FTMO and FundedNext may expand their crypto instrument offerings on funded accounts.

Market reaction

Bitcoin rallied on the announcement, testing $72,000. Ethereum gained 8% within 24 hours. However, the weekend brought a correction to $68,000 tied to the Iran conflict escalation.

Long-term perspective

This decision could pave the way for next-generation regulated crypto ETFs and significantly increase market liquidity. For traders using prop trading accounts, this is positive - more instruments and more opportunities.