SEC Proposes Cryptocurrency Classification Guidelines, CFTC Simultaneously Advances Prediction Market Regulation

Recently, the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) both submitted new regulatory proposals regarding cryptocurrencies and prediction markets to the Office of Information and Regulatory Affairs (OIRA) at the White House, aiming to establish a clearer regulatory framework for the industry.

The SEC's guidance is titled “Applicability of Federal Securities Laws to Certain Types of Crypto Assets and Transactions Involving Crypto Assets.” Although specific details have not yet been disclosed, an SEC spokesperson told Bloomberg that this guideline will focus on addressing the classification of crypto assets.

The guideline will consider the inherent properties, behavioral patterns, and application scenarios of cryptocurrencies to determine whether securities laws apply. Once implemented, crypto companies will have a clearer understanding of how to register, operate, and interact with investors.

Although this guidance remains at the “committee level,” it is more authoritative than previous staff guidance. However, it has not yet reached the standard of formal rules and will still require public consultation and other procedures.

It is worth noting that since the appointment of SEC Chair Paul Atkins, he has been committed to promoting a more crypto-friendly regulatory environment in the U.S. This proposal aligns closely with his more favorable policy goals.

Meanwhile, on March 2, the CFTC also submitted a proposal regarding prediction markets to OIRA. CFTC Chair Michael Selig stated that the agency will establish clear standards to specify which products can be self-certified in the market, which cannot, and how to evaluate different types of prediction market products.

This move by the CFTC comes at a time when prediction platforms like Polymarket and Kalshi are experiencing rising market activity. In this context, the CFTC’s involvement provides a clear regulatory framework for this rapidly growing emerging market and guides it toward compliant operation.

Overall, the two major regulatory agencies are advancing industry regulation in parallel. The SEC is focusing on token classification and defining securities boundaries; the CFTC is regulating prediction markets and establishing rules for new business models.

For the industry, this is undoubtedly a necessary step from chaos toward clarity. With continued efforts from both sides, the crypto asset market is expected to gradually mature and become more regulated.

#SEC #CFTC