According to CoinMeta, an employee from SEC clarified when pledge receipt tokens can be considered digital instruments rather than securities under U.S. law. On September 25th, the Corporate Finance Department of the Securities and Exchange Commission issued a FAQ that explained parts of the agency's interpretation of federal securities laws from March. The FAQ described how employees classify certain tokens and assess the commitments made by issuers to buyers. A pledge receipt is defined as a document that proves ownership of the underlying digital asset held by the holder; if it is not bound by an investment contract, such a receipt can be considered a digital instrument under specific circumstances. An employee from SEC pointed out that pledge receipts themselves do not grant the holder any additional financial benefits, and issuers are not allowed to use the deposited assets for their own purposes. This interpretation applies to both pledge tokens and redeemable wrapped tokens. Although holders may receive rewards for the underlying pledged assets, the receipt tokens themselves do not create such rights or set the amount of the rewards.