SEC clarifies to White House how securities laws apply to crypto assets

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SEC drafts crypto guidance

Highlights

The SEC sent an interpretive document to the White House outlining how U.S. securities laws may apply to crypto assets.
The draft may introduce a “token taxonomy” to classify which digital assets fall under SEC jurisdiction.
Clearer classification rules could reshape how crypto companies register, disclose information, and operate in the U.S. market.

The clarification reflects the position of the commission itself rather than that of agency staff, The Block reports. Once reviewed, the document could provide clearer rules for crypto companies operating in the U.S. market.

SEC discusses classification of crypto assets

The draft, titled “Commission Statement on the Application of Federal Securities Laws to Certain Crypto Assets and Certain Transactions Involving Crypto Assets,” was submitted to OIRA.

According to Bloomberg, a key part of the document may be a so-called “token taxonomy.” This refers to a system for classifying crypto assets that would help determine which digital assets fall under SEC jurisdiction as securities and which may belong to other categories.

For crypto companies, this has direct implications. The classification of a token determines whether projects must register with regulators, what disclosure requirements apply, and how trading platforms can operate.

SEC Chair Paul Atkins previously said that regulating digital assets remains one of the agency’s priorities. At the same time, he emphasized that the most stable solution would be dedicated legislation from Congress, although the regulator can act within its existing authority if necessary.

Efforts to create a comprehensive regulatory framework for the crypto market have stalled in Congress. One bill aimed at establishing rules for the industry has been delayed in the Senate due to disagreements between banks and crypto firms over yield from stablecoins.

CFTC prepares rules for prediction markets

Meanwhile, another U.S. regulator — the Commodity Futures Trading Commission (CFTC) — is preparing its own regulatory updates for digital markets.

This week, the CFTC also submitted a document to OIRA related to the regulation of prediction markets. Commission Chair Michael Selig said the agency plans to release an advance notice of proposed rulemaking.

“We are going to set very clear standards regarding what can be self-certified in our markets and what cannot, and how to evaluate the different products offered in this space,” Selig said.

According to him, the goal is to eliminate differences between federal and state interpretations of such markets. In recent years, several states have taken action against platforms such as Kalshi and Polymarket, arguing that some of their contracts violate local gambling laws.

“Our work in these markets, aside from participating in litigation, is to establish clear rules and regulations,” Selig said. “In the near future we will publish guidance, so stay tuned.”

What will change for crypto companies in the U.S.

The question of which crypto assets qualify as securities remains one of the most contentious issues in U.S. regulation. In recent years, the SEC has launched several high-profile lawsuits against crypto companies, including cases against Ripple, Coinbase, and Binance.

The lack of clear classification creates difficulties for both exchanges and blockchain developers. Many companies prefer to launch products outside the United States to reduce regulatory risks.

If the SEC ultimately introduces a clear system for classifying crypto assets, it could significantly change the operating environment for the industry in the U.S. market. More transparent rules could reduce legal uncertainty and simplify interaction between crypto businesses and the traditional financial sector.

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