CFTC and SEC Launch Coordinated Crypto Regulatory Efforts Under White House Initiative

US regulators are accelerating efforts to reshape the country’s digital asset landscape as the Commodity Futures Trading Commission (CFTC) collaborates with the Securities and Exchange Commission (SEC) on what is being called “Project Crypto.” Acting CFTC Chairman Caroline Pham announced the initiative, which aligns with a broader White House push to position the US as the “crypto capital of the world.” The CFTC has already rolled out measures such as 24/7 trading and perpetual derivatives on registered markets, while the SEC’s Paul Atkins emphasized modernizing securities regulations to support on-chain financial activity.

The White House’s 166-page Digital Asset Markets Report frames cryptocurrencies as a “next-generation technology” akin to the railroad and the internet, criticizing the previous administration for creating a “hostile environment” for crypto innovation. Among its recommendations are the creation of three digital asset categories—security tokens, commodity tokens, and commercial-use tokens—granting the CFTC authority over non-security digital assets and encouraging combined exchange, custody, and broker services under streamlined licensing.

The report also advocates for the passage of the Digital Asset Market Clarity Act (CLARITY) to clarify jurisdictional boundaries between the SEC and the CFTC and protect self-custody rights. It supports federal preemption over state laws for registered intermediaries and seeks to end crypto firm debanking practices. Additionally, the GENIUS Act aims to provide clarity for dollar-denominated stablecoins through reserve requirements and consumer protections.

Institutional adoption is also on the rise, with a Deloitte survey indicating that 23% of North American CFOs expect to use cryptocurrency in their treasuries within two years. However, the regulatory sprint is not without controversy. Senator Elizabeth Warren and other Democrats have raised concerns over potential conflicts of interest involving the Trump family’s cryptocurrency ventures, particularly the USD1 stablecoin backed by Emirati firm MGX and Binance. Warren described the arrangement as “a staggering model for corruption,” highlighting Binance’s guilty plea related to anti-money laundering violations.

Meanwhile, Trump’s personal crypto holdings have generated significant value. Bloomberg estimates that TMTG stock accounts for $2.2 billion of his $6.6 billion net worth, and recent months have seen over $1.2 billion in crypto gains. Nearly 70 Trump administration nominees and officials hold crypto investments, including Vice President JD Vance and seven Cabinet members, who collectively disclosed at least $2 million in crypto assets.

The crypto industry has also contributed heavily to Trump’s campaign, with over $26 million in donations. Blockchain.com led the contributions with $5 million, followed by venture capitalists Marc Andreessen and Ben Horowitz with $3 million each and Gemini Trust with nearly $3 million. In a recent move, Trump Media announced a $2 billion investment in Bitcoin, positioning itself among the top five public Bitcoin holders globally and launching a “Truth Token” rewards program.

As the regulatory landscape continues to evolve, the ethical and political questions surrounding the administration’s deep ties to the crypto sector will remain under scrutiny. With the CFTC and SEC moving forward on coordinated initiatives, the US is signaling a commitment to fostering a crypto-friendly environment—though the extent to which this will succeed without compromising regulatory integrity remains to be seen.

Source: [1]US Regulators Begin ‘Crypto Sprint’ as CFTC Teams with SEC on Trump’s Crypto Plan (https://cryptonews.com/news/us-regulators-begin-crypto-sprint-as-cftc-teams-with-sec-on-trumps-crypto-plan/)