§1. By its very nature, the state of consecrated life is neither clerical nor lay.
§2. That institute is called clerical which, by reason of the purpose or design intended by the founder or by virtue of legitimate tradition, is under the direction of clerics (Cf. Rescriptum ex Audientia Ss.mi , 18 May 2022 – Congregation for the Institutes of Consecrated Life and the Societies of Apostolic Life), assumes the exercise of sacred orders, and is recognized as such by the authority of the Church.
§3. That institute is called lay which, recognized as such by the authority of the Church, has by virtue of its nature, character, and purpose a proper function defined by the founder or by legitimate tradition, which does not include the exercise of sacred orders.
Source: Code of Canon Law (Vatican.va)