The US Securities and Exchange Commission (SEC) has introduced a formal classification system for crypto assets, marking significant regulatory shifts for the industry. The SEC divided crypto assets into five categories: Digital commodities, digital collectibles, digital tools, and stablecoins. The agency also clarified that a crypto asset can move in and out of securities classification depending on its use. This change represents a significant departure from the SEC's previous approach, which included an aggressive enforcement strategy. The move towards rule-based clarity aligns with calls from lawmakers and the industry, but it also acknowledges that context still matters.