A long-anticipated White House report aims to end years of regulatory confusion for US digital asset companies by clearly dividing oversight responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Policy report outlines new regulatory structure
President Donald Trump’s Working Group on Digital Assets released its recommendations this week, focusing on market structure, banking regulation, and reinforcing the US dollar’s dominance through stablecoins and updated tax laws.
A centerpiece of the report is the proposal to give the CFTC authority over spot markets for digital assets, while the SEC would continue overseeing securities markets.
Regulatory clarity sought for bitcoin firms
Edwin Mata, blockchain lawyer and CEO of Brickken, highlighted the significance of the move, stating:
“Letting each body oversee the instruments that best align with their expertise avoids duplication and confusion, allowing for consistent legal interpretations.”
Mata added that this division is vital in the US, where legal precedent plays a dominant role.
Previous agency overlap had led to fragmented legal interpretations and left courts to resolve disputes.
Industry reaction and bitcoin reserve questions
Analysts from Bitfinex argue that the recommendations may address a key hurdle to mainstream adoption by providing boundaries for regulatory enforcement.
They noted lingering concerns, however, about continued SEC enforcement and the absence of details on a promised US bitcoin reserve. The analysts stated:
“[Concerns include] the report’s push for intensified SEC enforcement against non-compliant firms, absence of details on a promised US Bitcoin reserve, and potential fractures in the crypto community over regulatory stringency, as noted in recent analyses.”
Additional recommendations regarding custody rules for bitcoin service providers are still anticipated as the US regulatory landscape evolves.
