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Commodity
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.
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
Security token
A security token — the SEC calls it a digital security, commonly a tokenized security — is a stock, bond or other security issued as a crypto asset, with the ownership record kept wholly or partly on a blockchain. In the US, it remains a security, and the securities laws apply to it.
What it means for you. In the US, the SEC says a tokenized share or bond can carry rights that differ materially from the underlying security, including economic and voting rights, and whether the issuer or an unaffiliated third party tokenized it changes what you actually hold. Offers and sales of securities must be registered with the SEC or fit an exemption.
Sources: SEC and CFTC: Application of the Federal Securities Laws to Certain Types of Crypto Assets (Release 33-11412, 2026), SEC: Crypto assets and the federal securities laws, SEC investor alert: Exercise Caution with Crypto Asset Securities · checked 4 October 2026