TLDR
- SEC submitted crypto securities guidance to the White House on March 3.
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Proposal may introduce token taxonomy for digital asset classification.
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Guidance is under review by the Office of Information and Regulatory Affairs.
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CFTC also filed prediction markets measure for federal review.
The U.S. Securities and Exchange Commission has taken a new step in shaping crypto oversight. The agency submitted interpretive guidance to the White House on March 3. The move outlines how federal securities laws could apply to certain crypto assets.
The proposal is now under review at the Office of Information and Regulatory Affairs. Reports indicate it may introduce a token taxonomy for digital assets. The framework would classify which tokens fall under securities laws.
Framework Targets Token Classification Standards
The guidance is titled “Commission Interpretation on Application of the Federal Securities Laws to Certain Types of Crypto Assets and Certain Transactions Involving Crypto Assets.” It was filed at the prerule stage for interagency review.
According to Bloomberg, the framework may establish a token taxonomy system. This system would categorize crypto assets based on defined legal standards. The classification would determine which tokens qualify as securities under federal law.
Such classification would affect how firms register with regulators. It would also shape disclosure rules and operational requirements. Companies may need to adjust how they engage with investors.
Commission-level guidance does not require a formal vote. Bloomberg reported that such guidance carries more enforceability than staff statements. This structure allows the agency to move forward without new legislation.
Regulatory Direction Under SEC Leadership
Since taking office, SEC Chairman Paul Atkins has identified digital assets as a regulatory priority. He has stated a preference for congressional legislation. However, he has also noted the agency can act independently if needed.
A bill aimed at creating a crypto market structure framework stalled in the Senate. The delay followed disagreements between banks and crypto firms. Disputes centered on stablecoin rewards and related financial treatment.
The White House has hosted meetings between banking and crypto representatives. These discussions seek to resolve differences over stablecoin models. The outcome may influence future legislative action.
If implemented, the SEC framework would provide clearer federal standards. It would define how existing securities laws apply to crypto transactions. This approach relies on current statutes rather than new laws.
CFTC Advances Prediction Markets Rulemaking
The Commodity Futures Trading Commission also submitted a regulatory measure to OIRA. The filing focuses on prediction markets and event-based contracts. It follows recent remarks from CFTC Chairman Michael Selig.
Speaking at the Milken Institute’s Future of Finance event, Selig said the agency plans further action. He stated,
“We’re going to be setting very clear standards as to what can be self-certified in our markets and what cannot.”
The upcoming rulemaking will address event contract markets, including sports-related products. Several states have taken enforcement action against platforms such as Kalshi and Polymarket. State authorities argue certain offerings violated gaming and gambling laws.
Selig said, “We are going out with guidance in the very near future, so please stay tuned.” The agency intends to clarify how federal rules apply to these products.
Federal Coordination Shapes Crypto Oversight
Both agencies have moved their measures into federal review channels. The Office of Information and Regulatory Affairs is examining the proposals. Interagency review allows coordination before final release.
The SEC proposal centers on defining which digital assets qualify as securities. The CFTC initiative focuses on market structure for prediction contracts. Together, these actions mark continued federal engagement with digital asset regulation.
Clear federal standards would affect registration, disclosure, and compliance procedures. Market participants are monitoring the review process closely. Further updates are expected following OIRA evaluation.
