The US Securities and Exchange Commission (SEC) on Tuesday issued an interpretation clarifying which types of cryptocurrencies are considered securities and how a “non-security” digital asset could meet certain conditions to become an investment contract.

The SEC’s new interpretation – which the US Commodity Futures Trading Commission also joined – classifies crypto tokens into five categories: digital commodities, digital collectibles, digital tools, stablecoins and digital securities, with the agency specifying that federal securities laws only apply to digital securities.

The SEC also said that a “non-security” crypto asset could become subject to securities laws if an issuer offers it by promoting investment in a common enterprise from which a purchaser could expect to profit.

Under its chair, Paul Atkins, the SEC has laid out sweeping plans to overhaul capital markets regulations to accommodate cryptocurrencies and blockchain-based trading. Atkins has previously said that most cryptocurrencies are not securities, a designation that requires registration with the SEC along with certain disclosures.

The crypto sector has for years argued that existing US regulations are inappropriate for cryptocurrencies and has called for Congress and regulators to write new ones that clarify when a crypto token is a security, commodity or falls into another category, such as stablecoins.

Also on Tuesday, Atkins laid out a safe harbor proposal for cryptocurrency companies that would make it easier to sell tokens and raise money. Atkins said the SEC should consider a “fit-for-purpose startup exemption”, which would allow crypto entrepreneurs to raise a certain amount of money or operate for a certain period of time while exempt from the agency’s rules.

“It’s way past time for us to stop diagnosing the problem and start delivering the solution,” Atkins said in remarks at an event held by the Digital Chamber crypto trade group in Washington DC.

Atkins said he anticipates the SEC will release a proposal on crypto safe harbors for public comment in the coming weeks. He also said the agency’s so-called innovation exemption, which he has previously said will exempt companies from securities laws to allow them to engage in new business models, will be incorporated in the coming proposal.

There’s a lot of upheaval and uncertainty in the world right now and this ripples through to every aspect of our lives. Pensions may not be the first thing that springs to mind but in times of conflict I do get messages asking about the potential impact of stock market turbulence on pension values and whether action needs to be taken.

It can be concerning when you check your pension and you see that it has gone down. You might think about whether it’s time to make some changes – it might feel like you are taking some power back in a turbulent time.

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But while I don’t have a crystal ball and can’t predict the future, what I can say is that pensions are a multi-decade investing journey and you need to take a long-term approach to them.

During my own pension saving experience I’ve been through several periods of huge stock market turbulence including the 2008 global financial crisis, the pandemic, the Russia/Ukraine conflict and more recently Trump’s tariffs. All these crises impacted pension values but given time the markets, and pensions, recovered.

Making knee jerk reactions such as changing investments or cutting contributions can cause more harm than good.

If you change investments, you risk crystallising your loss by selling out towards the bottom of the market and you won’t benefit when it starts to recover.

By keeping up your contributions, you can buy more units in your investments as the price is lower and so when they do recover it helps you bounce back more quickly.

Stopping or reducing pension contributions will also mean it takes your pension longer to recover. In short, if you have regular contributions set up, and are in the growth stage of saving for retirement, the best thing to do right now is actually nothing.

If you are coming up to retirement, then you will be concerned about the impact as you may be looking to start drawing an income from your pension soon. If this is the case, then first of all check to see if you are invested in what is known as a lifestyling fund.

These are funds that start to switch you out of equities into so-called lower risk assets such as bonds in the final years before retirement as a means of protecting your pension from stock market swings.

If this is the case, then when you look at your pension you may find that you have been worrying unnecessarily as your pension has not been impacted to the degree you thought.

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Those drawing an income through income drawdown may choose to delay doing so for a short while until the market recovers or else take a lower income until the market settles.

We recommend retirees keep one to three years’ worth of essential expenses in an easy access account to help them smooth their income during periods of volatility.

People looking to secure a guaranteed income through an annuity will find the market continues to offer good value. The latest data from HL’s annuity portal shows a 65-year-old with a £100,000 pension can get up to £7,712 per year from a single life, level annuity with a five-year guarantee.

I’ve set out the different scenarios that you may wish to consider during these times based on past experience. However, if you are concerned about the potential long-term impact on your pension then it may be worth seeking financial advice.

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