SEC Submits New Guidance on Crypto Asset Securities Classification to White House

The U.S. Securities and Exchange Commission (SEC) recently submitted a draft regulatory guidance to the White House regarding the securities attributes of crypto assets, aiming to clarify how existing securities regulations apply to various crypto token transactions. This document does not amend federal law, but its direct issuance by the SEC Commission, rather than staff, gives it greater authority and policy direction.

Previously, SEC Commissioner Paul Atkins revealed that regulators are planning to establish a formal digital asset classification system to distinguish between different types of tokens. This classification system may determine whether a certain type of token should be under the jurisdiction of the SEC or the Commodity Futures Trading Commission (CFTC), which has a profound impact on the industry's compliance path.

According to the process, the guidance must first be reviewed by the White House Office of Information and Regulatory Affairs (OIRA), and then the three SEC Commissioners will vote on whether to adopt it. An SEC spokesperson stated that this move is intended to clarify legal obligations for investors and innovative companies, while also coordinating with the market structure reform bill currently under consideration by Congress. It is worth noting that regulatory focus has also extended to prediction markets. The CFTC has independently submitted a regulatory proposal for prediction markets to the White House. However, the related proposal has sparked controversy, with an alliance organization called "Gambling Is Not Investing" pointing out that some prediction platforms essentially constitute illegal sports betting and should comply with state and tribal gaming regulations. Currently, federal agencies are still conducting inter-agency assessments of these two proposals, and the final direction of the regulatory framework remains to be determined.