What Is the Difference between a Security and a Commodity in Crypto Regulation?

In US regulation, a commodity is a fungible good used to produce or exchange other goods, like Bitcoin and Ethereum (often considered commodities). A security is an investment contract that represents an investment of money in a common enterprise with the expectation of profit from the efforts of others (Howey Test).

Securities are subject to stringent registration and disclosure requirements, unlike commodities. The classification determines which regulatory body has jurisdiction.