Securities: Stocks and Bonds
Commodities: Metals, Grains, and Oil
A commodity's defining feature is its interchangeability. One unit is essentially the same as another unit. To an orange juice company oranges are oranges, to an apple juice company apples are apples, and to an oil refinery one barrel of oil is a lot like any other barrel of oil. Commodities must meet certain minimum quality standards and markets do distinguish between different types of the same commodity. But for the most part it's about quantity.
https://www.findlaw.com/consumer/securities-law/securities-v...
A commodity is a basic good used in commerce that is interchangeable with other goods of the same type. Commodities are most often used as inputs in the production of other goods or services. The quality of a given commodity may differ slightly, but it is essentially uniform across producers.
https://www.investopedia.com/terms/c/commodity.asp
> And what does this distinction change for the SEC?
Good question.
This thread is full of suggestions. I couldn’t find a truly compelling one except that Bitcoin could fit the description of a commodity.
