US financial regulators are signalling a pivotal shift in their approach to cryptocurrency oversight, moving decisively from mere coordination to active execution. Senior officials from the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have outlined concrete plans to advance joint rulemaking, leveraging their existing authorities to bring clarity and structure to the rapidly evolving digital asset markets.
From Coordination to Concrete Action
This strategic pivot marks a new phase where regulatory bodies are no longer waiting for comprehensive congressional legislation. Michael S. Selig of the CFTC emphasized a transition towards implementation, directing staff to draft new rules and revisit existing proposals that have contributed to market uncertainty. A cornerstone of this collaborative effort is "Project Crypto," a joint framework aimed at harmonizing oversight across both agencies. This initiative seeks to establish a shared crypto asset taxonomy, clarify jurisdictional boundaries, and significantly reduce overlapping compliance requirements for market participants.
Defining Digital Assets and Expanding Oversight
A critical focus of "Project Crypto" is the development of a common classification framework for digital assets. Notably, the CFTC has indicated its position that most crypto assets currently trading are not securities, a stance that promises to alleviate years of regulatory ambiguity. To address this, both the SEC and CFTC are working together on a joint codification of a crypto asset taxonomy as an interim measure, aiming to draw clearer lines of jurisdiction. Beyond classification, the CFTC is advancing rulemaking in several key areas, including supporting the use of tokenized collateral, creating pathways for onshore perpetual crypto derivatives, and clarifying the treatment of leveraged and margined retail crypto trading. Furthermore, the agency plans to explore innovation exemptions and safe harbors for software developers and non-custodial systems operating within the decentralized finance (DeFi) space. This comprehensive approach underscores regulators' commitment to modernizing oversight using current powers, independent of pending legislation.
