White House Report Clarifies SEC-CFTC Oversight of Crypto Markets

The White House has issued a comprehensive report outlining policy recommendations for the regulation of cryptocurrencies in the United States, aiming to reduce ambiguity and establish a clearer division of responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The report, released by President Donald Trump’s Working Group on Digital Assets, proposes that the CFTC oversee spot crypto markets while the SEC retains authority over crypto assets deemed securities [1].

This regulatory restructuring is expected to resolve long-standing concerns about overlapping enforcement and inconsistent interpretations of securities law, which have contributed to legal disputes and regulatory uncertainty. Edwin Mata, CEO of tokenization platform Brickken, highlighted the importance of aligning regulatory oversight with each agency’s core competencies, stating that such a division would avoid duplication and confusion, fostering a more consistent legal framework [1]. He emphasized that this clarity is particularly critical in the U.S., where legal interpretations are heavily influenced by precedent and case law.

The timing of the report is significant, as it follows the resolution of the high-profile SEC v. Ripple Labs lawsuit. After a two-year legal battle, the SEC dropped its appeal in March 2025, following a ruling that XRP was not a security in retail sales but constituted one in institutional transactions. Ripple agreed to a $125 million settlement in August 2024, and the company recently filed a joint motion with the SEC to release the funds held in escrow [1]. This case has been viewed as a landmark moment for the crypto industry, setting a precedent that may influence future regulatory approaches.

Analysts from Bitfinex noted that the White House report addresses a key hurdle for the mainstream adoption of crypto by providing regulatory boundaries that could support innovation [1]. However, they also pointed to ongoing challenges, such as the lack of details on a potential U.S. Bitcoin reserve and concerns over the potential impact of stricter regulations on the crypto community. The report also calls for increased SEC enforcement against non-compliant firms, while suggesting that further guidance on banking custody rules for crypto service providers may still be under development.

The policy recommendations align with broader legislative efforts, such as the proposed CLARITY Act, which aims to establish a more structured legal framework for digital assets. While some industry figures, like Arthur Hayes, have expressed support for the direction of the report, others have advocated for less regulation and more market-driven solutions [1].

Overall, the White House report marks a pivotal step in clarifying the regulatory landscape for U.S. crypto firms, offering a structured approach to oversight that could foster a more transparent and scalable digital asset ecosystem.

Sources:

[1] Cointelegraph – White House Crypto Rules Bring SEC-CFTC Clarity for U.S. Crypto Firms: Lawyer

https://cointelegraph.com/news/white-house-crypto-rules-sec-cftc-clarity-us-firms