- SEC files crypto guidance with White House review office.
- CFTC submits guidance defending prediction markets.
The US Securities and Exchange Commission has taken a formal step towards establishing how federal securities laws should be applied to cryptocurrencies. The initiative bears the full weight of the agency, unlike usual staff interpretations, and is currently undergoing interagency review at the White House’s Office of Information and Regulatory Affairs.
Coordinated Push for Digital Asset Clarity
On March 3, the Commission filed a guidance document, not to create a new law, nor to expand regulatory and compliance requirements, but to spell out how longstanding securities rules may be enforced in parts of the crypto market.
The SEC under Paul Atkins made it clear from the get-go that it would commit to regulatory clarity and work alongside other agencies to strengthen the US digital asset infrastructure and ultimately advance the vision of American leadership in the sector.
“As Chairman Atkins said, noted an SEC representative, “the Commission will consider interpretive guidance around a token taxonomy for crypto assets — in line with market structure legislation — to ensure that investors and innovators have a clear understanding of their regulatory obligations.”
The crypto market has long demanded clearer asset classification rules, and the market structure talks present a golden opportunity to streamline relevant regulatory elements and close any holes that could potentially confuse market actors or resurrect selective enforcement.
Additionally, the SEC’s current efforts align with those of the Commodity Futures Trading Commission on clarity, and both regulators have been working together to establish harmony in their oversight activities. The joint regulatory effort provides greater influence in Congress, while protecting the interests of investors and consumers.
Once the SEC’s guidance passes its review at the OIRA, the agency’s commissioners will vote on the draft interpretation, and if it secures a positive vote, it will get formally adopted as part of the Commission’s policy and will receive institutional backing and command regulatory influence.
CFTC Guidance For Prediction Markets
The CFTC, on the other hand, submitted a similar guidance on prediction markets to the OIRA on March 3 as a follow-up to the agency’s stance against the increasing legal assault by several states on prediction market platforms.
Last month, CFTC Chair Mike Selig defended the agency’s long-standing authority to regulate “any contract based on a commodity,” including prediction markets. He also condemned over 50 lawsuits against registered exchanges such as Polymarket, Coinbase, Kalshi, and Crypto.com over their event contracts offerings.
The commodities regulator filed a friend-of-the-court brief with the Ninth Circuit in support of Crypto.com while warning that it would go to any length possible to defend the “exciting products” even if it requires lawsuits.
The recent guidance highlights the CFTC’s resolve in tackling the crackdown on prediction markets, which have emerged as a prominent sector of the commodities market.
According to Selig, the agency does not plan to be involved only with litigation, but intends to set clear rules and regulations. This week’s guidance filings by both agencies are a crucial step towards achieving industry-wide clarity and promoting digital asset innovation.
