How Did a Meme Coin End Up on the Same Regulatory List as Bitcoin, Ethereum and XRP?

One analyst has opened up about the recent SEC and CFTC joint classification. In the newly released framework, regulators classified 16 tokens, including Bitcoin, Ethereum, XRP, Solana, and even the surprise pick Shiba Inu, as digital commodities. According to VirtualBacon, the idea of including SHIB was simple: these tokens usually power blockchains using systems like proof-of-work or proof-of-stake.

This discussion resurfaced because the SEC noted in February 2025 that meme coins are more like digital collectibles than traditional investments.

They also come with features like staking, validators, and gas fees, basically the core stuff that keeps a blockchain running. So in most cases, to be called a commodity, a token needs to act like the backbone of a network.

But going by that logic, the analyst feels something doesn’t quite add up with Shiba Inu, and that’s where things get interesting.

So, Why Is Shiba Inu Included?

Unlike most tokens on the list, Shiba Inu started as a meme coin and doesn’t have the same foundational role as major layer-1 blockchains.

However, there are possible reasons behind its inclusion. Shiba Inu has been around for a long time, similar to assets like Dogecoin, and has gone beyond its meme origins. Developments like its layer-2 ecosystem and staking features may have contributed to regulators viewing it as more than just a speculative asset.

Commodity or Collectible?

Despite this, the analyst argues that Shiba Inu may have been better suited for the “digital collectibles” category. This category includes assets tied to internet culture, memes, and community-driven value, areas where Shiba Inu clearly belongs.

“I honestly don’t know why Shiba Inu is not a digital collectible. Instead, it’s a digital commodity to each their own, I guess. But when you look at this list, any cryptos right now that is a layer one blockchain, that’s similar to these proof of work, proof of stake, runs smart contracts, runs DeFi, probably will fit into digital commodities.”

The mismatch shows how early and flexible this classification system still is. Not every asset fits perfectly into one box.

Having said that, the other factors that support the analyst’s logic, its price often moves on hype and endorsements, especially from Elon Musk, rather than fundamentals, which is typical for collectible-style assets.

Also, token “burns” are seen more as a marketing move to create scarcity, similar to how collectibles gain value.