White House Crypto Rules Clarify SEC and CFTC Roles

The White House has introduced a comprehensive policy framework to resolve long-standing regulatory ambiguity between the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

Overview

United States President Donald Trump’s Working Group on Digital Assets released a crypto policy report on Wednesday, offering recommendations on market structure, banking regulations, and strategies to strengthen the US dollar’s dominance through stablecoins and updated crypto tax policies. 

A blockchain lawyer and CEO of tokenisation platform Brickken, Edwin Mata, said,

“Clarifying regulatory oversight limitations between the two agencies will lay the groundwork  for a mature, transparent and scalable crypto ecosystem.”

According to a prominent legal expert, this move could be a game-changer for crypto firms operating in the US. 

The White House’s push for clear rules comes after months of increasing tension between US regulators. The SEC has pursued high-profile enforcement actions against crypto exchanges like Coinbase and Binance, arguing that many tokens qualify as unregistered securities. Meanwhile, the CFTC has asserted jurisdiction over certain crypto derivatives and argued that some tokens, like Ethereum (ETH), are commodities. This regulatory tug-of-war has left many startups unsure of how to remain compliant.

A Dual-Regulator Approach: Defined Role for SEC and CFTC

According to the policy guidance, the administration calls for a

“dual-regulator approach”

that assigns distinct responsibilities to both agencies. The SEC will retain authority over digital assets that meet the definition of securities, particularly tokens sold to raise capital. The CFTC will focus on regulating commodities markets and oversee derivatives like futures and options related to cryptocurrencies.

Fintech lawyer Daniel Harper explained that the new framework aligns with growing bipartisan sentiment in Congress supporting tailored crypto regulation.

“This structure mirrors what we’ve seen in legislative efforts like the FIT21 Act and the Digital Commodities Consumer Protection Act. It reflects the reality that not all crypto assets are created equal, and regulation should reflect that nuance.”

While the White House framework does not create new laws, it encourages Congress to pass clear legislation codifying the separate roles of the SEC and CFTC. It also recommends new disclosures for digital asset issuers and stronger protections for retail investors, including rules on custody, fraud prevention, and cybersecurity standards.

Industry Reactions: A Step Forward, But Not Yet a Solution

Initial reactions from the crypto community have been cautiously optimistic. Many stakeholders welcome the clarity, but some express concern that the dual-regulator model could still lead to overlapping enforcement or inconsistent rulings unless Congress acts swiftly.

Sheila Warren, CEO of the Crypto Council for Innovation, praised the White House for

“finally acknowledging the need for differentiated regulation, but warned that without statutory backing, there’s still a risk of regulatory whiplash.”

Meanwhile, industry players hope the new framework will help unlock innovation in the US without pushing companies offshore. Several crypto firms, including Ripple and Circle, have recently expanded operations abroad, citing uncertainty in the US regulatory landscape.

Harper emphasised that while the White House framework is promising, implementation will be key.

“This signals regulators and lawmakers that it’s time to stop the turf wars and get serious about building a regulatory environment where crypto companies can thrive.”

For now, Washington’s message is clear: crypto regulation is no longer a question of if but how. With the White House stepping in to coordinate the conversation, the industry may finally be on the verge of regulatory clarity that has eluded it for over a decade.