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What is a commodity in crypto?
A commodity, in US law, is something covered by the Commodity Exchange Act, which the CFTC administers. The CFTC says virtual currencies such as Bitcoin have been determined to be commodities, and the SEC's 2026 interpretation calls crypto assets tied to a working network 'digital commodities' that are not securities.
What it means for you
In the US, the CFTC says its jurisdiction is implicated when a virtual currency is used in a derivatives contract, such as a futures contract, or when there is fraud or manipulation involving a virtual currency traded in interstate commerce. The 2026 release states that it does not alter either the SEC's or the CFTC's statutory authority.
How it works
The SEC's March 2026 release defines a digital commodity as a crypto asset intrinsically linked to, and deriving its value from, the programmatic operation of a functional crypto system, plus supply and demand. It is needed to use the system — to stake in consensus, pay gas fees, or vote on upgrades — and the system has no central party distributing rewards, so a buyer would not reasonably expect profit from others' managerial efforts. In the same release the CFTC said it will administer the Commodity Exchange Act consistent with the interpretation, and that certain non-security crypto assets could meet that Act's definition of commodity.
Sources: CFTC: Bitcoin Basics, SEC and CFTC: Application of the Federal Securities Laws to Certain Types of Crypto Assets (Release 33-11412, 2026) · checked 4 October 2026
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