White House Proposes SEC-CFTC Split for Crypto Regulation
The White House has released a crypto regulation policy report that sets clear oversight boundaries between the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Under the proposal, the CFTC gains authority over the spot crypto market, while the SEC focuses on digital assets deemed securities. This crypto regulation framework aims to reduce legal fragmentation and foster a transparent, scalable crypto ecosystem.
The report also covers market reforms, new banking rules for service providers, stablecoin oversight, and crypto tax law updates designed to bolster the US dollar’s dominance.
The policy comes two months after the SEC dropped its appeal in the Ripple lawsuit over $1.3 billion in unregistered XRP sales. The case concluded with a mixed ruling on retail and institutional trades and a $125 million settlement.
Analysts say clearer regulatory boundaries could ease investor concerns and boost US crypto adoption. They warn, however, that intensified SEC enforcement and unresolved banking custody rules may temper gains in the short term.
Neutral
The new crypto regulation framework reduces long-term uncertainty and legal fragmentation, which supports broader market confidence and adoption. However, the prospect of intensified SEC enforcement and unresolved banking custody rules could constrain near-term trading activity. These opposing factors balance out, leading to a neutral market impact.