US SEC and CFTC Advance Regulatory Frameworks for Crypto Assets and Prediction Markets

U.S. financial regulators are accelerating their regulatory efforts targeting crypto assets and emerging prediction markets, aiming to establish clearer legal boundaries. According to the latest news, the U.S. Securities and Exchange Commission (SEC) has submitted a draft regulatory guidance to the White House, clarifying how existing federal securities laws apply to certain digital assets. The document is currently under review by the White House Office of Regulatory Affairs and is considered a crucial step for the U.S. in defining the legal attributes of digital tokens.

The core content of the draft is the proposed "token classification system," which categorizes tokens into securities and non-securities assets based on their function, economic substance, and holder expectations. This framework helps clarify which tokens are subject to SEC securities regulations and which fall under commodities or technology tools, thereby reducing the long-standing compliance ambiguity faced by the industry. This move will provide clearer operational guidelines for crypto businesses, investment platforms, and individual investors, reducing legal risks.

At the same time, the U.S. Commodity Futures Trading Commission (CFTC) has also submitted a regulatory proposal to the White House targeting prediction markets. Prediction markets allow users to trade based on the outcomes of future events such as political elections and economic data. In recent years, they have garnered significant attention from fintech companies due to their integration with blockchain technology. The CFTC believes that some prediction contracts possess derivative characteristics and should be included in the commodity trading regulatory scope. The actions of the two major regulatory agencies reflect the urgent demands from Congress and the industry to resolve jurisdictional disputes. As traditional financial institutions accelerate their deployment of digital asset services, the need for global regulatory coordination of the crypto ecosystem is increasing. If the aforementioned frameworks are finalized, they will significantly impact the registration process, information disclosure standards, and business architecture of crypto projects in the United States, promoting the market towards a more standardized and transparent development trajectory.