The Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) have submitted legislative proposals to the White House to oversee the crypto industry and futures markets, improving their efforts to provide transparency and regulate emerging markets.
SEC Advances Crypto Taxonomy Plans
This week, Wall Street’s top financial regulators, the SEC and the CFTC, stepped up their efforts to provide legal regulations and fully establish a path to adoption by presenting their plans for the governance of crypto assets and prediction markets to the White House for review, Bloomberg reported on Wednesday.
Independent agencies such as the SEC and CFTC were not previously authorized to submit new rules to the White House for review, the media said. However, by 2025, the Trump administration announced that all executive branch agencies, including the US financial regulators, were expected to comply with this requirement.
The website of the White House Office of Information and Regulatory Affairs (OIRA) indicates that the agency received a crypto regulatory measure from the SEC on Tuesday regarding “the application of Federal Securities laws to certain types of Crypto Assets and Other Transactions Involving Crypto Assets.”
Bloomberg reported that the commission level guidance may be related to the taxonomy of crypto assets. A spokeswoman for the agency pointed to previous comments from SEC Chairman Paul Atkins.
Last month, Atkins proposed to develop legal guidelines for the separation of tokens, in line with the crypto market structure bill, stressing that regulatory clarification of digital assets is long overdue.
The agency was set to explore a taxonomy of tokens to define digital assets more precisely and clarify applicable laws. This could establish classes of crypto assets, limit SEC or CFTC oversight and influence the way firms register, disclose information, and operate.
The SEC Chairman urged Congress to enact “future-proof” measures, but also acknowledged that the agency has broad authority to pursue regulations if the market structure bill fails to advance.
CFTC-SEC Push To Foster Regulated Innovation
Notably, the CFTC has also partnered with the SEC to bring “coordination, consistency, and a unified approach to overseeing the crypto asset markets regime” through their joint “Project Crypto” initiative.
The sister agencies recently unveiled their plan to clarify regulatory boundaries, remove compliance requirements, and reduce regulatory fragmentation through their cooperation.
CFTC Chairman Michael Selig explained that the agencies aim to ensure that “innovation grows on American soil, under American law, and in the service of American investors, customers and businesses.”
As part of these efforts, the CFTC posted an advance notice of proposed rulemaking (ANPR) to the prediction markets on Monday, according to the OIRA website. This measure, which is under review by the White House, can set clear standards for the emerging market, which exploded in popularity last year, but also faced strong scrutiny in several American states.
On Tuesday, the CFTC official promised to establish “very clear standards of what can be verified in our markets and what cannot and how to evaluate the different products offered in the space.”
Speaking at the Milken Institute’s Future of Finance conference, Selig noted that, as seen in the crypto industry, many regulators are trying to block these markets, the more they go offshore.
“So my view on this is that we have to put the right rules and regulations in place here in the United States, or else we’re going to have black markets overseas,” the regulator said.
Bitcoin (BTC) trades at $72,673 in the one-week chart. Source: BTCUSDT on TradingView
Featured image from Unsplash.com, Chart from TradingView.com
Planning process because bitcoinist focuses on delivering well-researched, accurate, and unbiased content. We maintain strict sourcing standards, and each page is diligently reviewed by our team of senior technical experts and experienced editors. This process ensures the integrity, relevance, and value of our content to our readers.
