The U.S. Securities and Exchange Commission (SEC) has submitted a regulatory framework for crypto assets to the White House, clarifying how federal securities laws apply to various digital assets. This document is currently under review by the White House Office of Information and Regulatory Affairs (OIRA), marking the first systematic proposal of digital asset regulatory standards under Chairman Gary Gensler's leadership.
The framework consists of four core components. First is the token classification system, which clearly defines tokens based on their use, structure, and distribution methods. This foundational definition addresses previous regulatory ambiguities—historically, the SEC has arbitrarily classified various tokens as securities without publicly disclosing specific criteria, leading to a lack of predictability in the market.
Secondly, the framework seeks to clarify the jurisdictional division between the SEC and the Commodity Futures Trading Commission (CFTC). For a long time, Bitcoin has been widely regarded as a commodity, while Ethereum's status has been contentious, and other tokens have remained in a “regulatory gray area.” The proposed criteria aim to provide actionable guidance on the boundaries between securities and commodities.
The third part focuses on the analysis mechanism for “investment contracts,” notably introducing an innovative “status exit” pathway. Previously, once a token was classified as a security, it was permanently subject to securities regulations. The new framework proposes that if a project’s network achieves sufficient decentralization and possesses real utility, its tokens may exit the securities classification, providing a compliance pathway for many early-stage projects that started under a securities model but have since matured.
The fourth part standardizes the registration process for capital raising and clarifies the legal positioning of intermediaries such as transfer agents and wallet service providers. A clear registration channel will encourage projects to raise funds legally within the U.S., reducing the tendency to operate offshore to evade regulation.
The submission of this framework is seen as a formal shift from the “enforcement-based regulation” model of former Chairman Gary Gensler. In the past, the SEC often established policies through litigation cases, whereas this time it is advancing regulation through open and transparent rule-making. Notably, the CFTC also submitted a regulatory proposal regarding prediction markets to the White House on the same day, indicating that the federal level is coordinating a unified stance on crypto regulation. Currently, the framework is still in the public comment phase and has not yet become law, but it has already sent a clear signal of normalization to the industry.