Definition ∞ A non-security commodity is a fungible asset that is traded on a market but does not qualify as a security under existing regulatory definitions. These assets typically possess intrinsic value, are interchangeable, and are often used as raw materials or basic goods. In the digital asset space, some cryptocurrencies are argued to be non-security commodities, similar to gold or oil, based on their decentralized nature and use cases. This classification impacts regulatory treatment.
Context ∞ The classification of digital assets as a non-security commodity versus a security is a dominant and ongoing regulatory debate, frequently appearing in crypto news. Jurisdictions globally are working to establish clear guidelines, which significantly affects how digital assets are issued, traded, and taxed. Clarity on this distinction is critical for market participants and the long-term legal standing of various digital assets.