How Do Different Jurisdictions Classify Cryptocurrencies and Derivative Tokens?

Jurisdictions classify these assets differently, leading to regulatory fragmentation. Cryptocurrencies are often classified as commodities (US), virtual assets (FATF), or a new asset class.

Derivative tokens, if representing an underlying security, are typically classified as a security token and fall under existing securities law (e.g. SEC in the US).

If they are purely functional within a decentralized system, they might be classified as a utility token.