SEC submits cryptocurrency regulation framework to the White House; token classification system may reshape U.S. crypto market rules

On March 5, the U.S. Securities and Exchange Commission (SEC) submitted an interpretive guidance to the White House at the commission level, explaining how federal securities laws apply to crypto assets and related transactions. Titled “Commission Interpretation Regarding the Applicability of Federal Securities Laws to Certain Types of Crypto Assets and Transactions Involving Crypto Assets,” the document was submitted on March 3 and is currently under inter-agency review before rulemaking.

According to publicly available information, the guidance may focus on establishing a “token classification system” to determine which crypto assets are considered securities and regulated by the SEC, and which can be treated differently. If this framework is implemented, it will directly impact registration processes, disclosure requirements, and how crypto businesses operate with investors. Industry insiders believe that such a commission-level interpretation generally carries more weight than staff opinions.

SEC Chair Paul Atkins has recently emphasized that regulating digital assets is a key issue. He noted that while a more comprehensive legal framework still requires Congressional action, regulators can take steps within their existing authority when necessary. Previously, a legislative effort in the U.S. Senate concerning the structure of the crypto market faced delays, with stablecoin incentives becoming a point of contention between banking institutions and the crypto industry.

Meanwhile, the U.S. Commodity Futures Trading Commission (CFTC) is also advancing related policies. The CFTC recently submitted a proposal on prediction markets to the White House Office of Management and Budget. CFTC Chair Michael Selig revealed in public statements that the agency plans to issue a pre-notice of proposed rules to clarify which prediction products can be self-certified in regulated markets.

Regulators aim to resolve discrepancies between federal and state oversight of prediction markets through unified rules, especially for sports-related contracts. Recently, some state governments have taken enforcement actions against prediction market platforms, citing potential violations of gambling laws. As the SEC and CFTC advance their regulatory frameworks simultaneously, the compliance boundaries for crypto assets and prediction markets in the U.S. are gradually becoming clearer.