The White House has released a report proposing a clearer division of regulatory responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). This initiative aims to minimize jurisdictional friction and regulatory ambiguity within the US cryptocurrency market.
The report recommends assigning oversight of digital assets deemed securities, along with related products and platforms, to the SEC. Concurrently, it proposes granting the CFTC authority over spot markets for cryptocurrencies classified as commodities.
This development follows the recent conclusion of the SEC’s high-profile lawsuit against Ripple Labs, where the agency dropped its appeal concerning rulings on Ripple’s programmatic sales of XRP. The company’s partial legal victory was widely seen as a significant moment for the broader crypto industry.
Analysts highlight that the new framework advocates for ‘same risk, same legislation’ principles, addressing a major obstacle to innovation by potentially providing the long-sought regulatory clarity sought by market participants. The proposed structure intends to reduce regulatory overlap, mitigate legal confusion, and enhance market clarity and investor protection.
However, the report also acknowledges that challenges persist in the evolving US regulatory landscape, particularly concerning the complexities involved in classifying specific crypto assets.