Crypto FAQ: How are cryptocurrencies classified (securities vs commodities)?
Of the 20K+ Decentralized Finance (DeFi) cryptocurrencies and tokens listed on CoinMarketCap.com, from a traditional Centralized Finance (CeFi) regulatory perspective (e.g., US Treasury, US SEC, US Federal Reserve) relatively few of them would qualify as traditional currencies. While the Group of Seven (G7) economic powers sort out the regulatory issues associated with classifying DeFi financial assets vs. CeFi financial assets, the following draft table indicates "work-in-progress"—there is yet no emerging consensus among the G7!
The following table compares and contrasts Cryptoeconomic DeFi financial assets vs macroeconomic CeFi financial assets:
Table: Financial Asset Types - DeFi vs CeFi
| Asset Type | Canonical Examples | CeFi Examples | DeFi Examples |
|---|---|---|---|
| Currency | National fiat currencies | USD, EUR, YEN, GPB, YUAN, ... | Stable Coins: USDT, USDC, BUSD, ...; CBDCs: digital Yuan (a.k,a., e-CNY, e-RMB, e-Yuan), digital "Loonie" (digital CAD), ... |
| Equity Security | Stocks (shares in corporations) | AAPL, GOOG, TSLA, AMZN, ... | All Altcoins not designated as Stable Coins, Commodities, NFTs. |
| Debt Security | Corporate & Government bonds | Corporate grade AAA-BBB & junk bonds / US Treasuries, EU-Bonds, ... | BTC Bonds [El Salvador] |
| Commodity | Precious metals / Agricultural goods / Fossil fuels / ... | Gold, Silver, Platinum, ... / Wheat, Corn, Soybeans, / Oil, Natural Gas, ... | BTC, ETH** [TBD], ... |
| Tangible Assets | Physical Property ... | Real Estate, Jewelry, Fine Art, ... | Non-Fungible Tokens (NFTs) for digital Art, ... |
| Intangible Assets | Intellectual Property ... | Patents, Copyrights, Trademarks ... | Non-Fungible Tokens (NFTs) for digital Copyrights, ... |
DISCLAIMERS
NO INVESTMENT ADVICE
The information provided on this website does not constitute investment advice, financial advice, trading advice, legal advice, or any other sort of advice, and you should not treat any of the website's content as such. CRYPTOCURRENCY WORKS does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor or legal advisor before making any investment decisions.
ACCURACY OF INFORMATION
CRYPTOCURRENCY WORKS will strive to ensure the accuracy of information provided on this website, although it will not hold any responsibility for any missing or erroneous information. CRYPTOCURRENCY WORKS provides all information as is. You understand that you are using any and all information available here at your own risk.
CRYPTOCURRENCY WORKS and Cryptocurrencyworks.com are trademarks of PivotPoint Technology Corporation. All other product and service names mentioned are the trademarks of their respective companies.