US Regulators Begin Drafting New Rules
Leading Wall Street regulators are actively developing new policy proposals aimed at providing clearer oversight for the crypto industry and the rapidly expanding prediction markets.
The U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have submitted their regulatory plans to the White House for review. While specific details remain undisclosed, this administrative process is regarded as one of the most substantive regulatory moves in recent months.
Policy Direction Shifts Significantly
Since Donald Trump returned to the White House last year, U.S. financial regulators have notably shifted their stance on digital assets and event contracts.
Compared to the previous administration, the new policies reflect a more favorable regulatory approach overall. If these plans are ultimately enacted, they may:
- Establish a formal regulatory framework for the crypto industry
- Offer clearer standards for prediction markets
- Continue the current, relatively relaxed regulatory model
These policies could also have lasting impacts on traditional financial market operations.
Crypto Markets Move Toward Mainstream Adoption
In recent years, crypto assets and prediction markets have steadily moved closer to integration with mainstream financial systems.
Notably:
- Prediction market trading volumes have reached the multi-billion dollar level
- Digital asset firms are receiving increased support within the policy environment
- The U.S. government has outlined its vision to become a “global crypto hub”
Amid this backdrop, the industry’s longstanding call for regulatory clarity is gradually being addressed.
SEC Developing Crypto Asset Classification Guidance
This week, the White House’s Office of Information and Regulatory Affairs (OIRA) received a significant policy document from the SEC focused on “the applicability of federal securities laws to certain crypto assets and their trading.”
SEC Chairman Paul Atkins has indicated that regulators are considering a token taxonomy system to clarify the legal status of different types of crypto assets.
(Source: Stefani Reynolds/Bloomberg)
If this classification system is established, it could determine:
- Which tokens are classified as securities
- Which assets fall under CFTC oversight
- Corporate obligations for registration and information disclosure
Committee-level guidance of this nature requires a regulatory agency vote for approval, carries greater authority than general staff statements, but is still distinct from full legislative procedures.
Congress Faces Obstacles to Legislation
Despite regulatory agencies advancing policy, structural crypto market bills have yet to pass smoothly in Congress.
One area of contention stems from disagreements between the banking industry and crypto companies, including:
- Whether platforms can offer stablecoin holding rewards
- Competitive issues between banks and crypto enterprises
Whether platforms like Coinbase can provide these services has become a focal point in negotiations.
Reports indicate that representatives from the banking and crypto sectors have recently held multiple meetings at the White House, seeking compromise solutions.
Prediction Markets Also Under Regulatory Focus
Beyond crypto assets, regulators are also directing attention to prediction markets.
Prediction markets allow investors to trade on the outcomes of various events, such as:
- Presidential election results
- Sports events
- Geopolitical developments
CFTC Chairman Michael Selig has stated that related rules are entering the Advance Notice of Proposed Rulemaking stage, which serves as a conceptual discussion prior to formal legislation.
Geopolitical Events Fuel Trading Activity
Over the past year, prediction market trading volumes have surged, with most activity stemming from sports-related contracts. Recently, some markets have begun featuring contracts linked to Middle East developments, such as the Iran conflict and regional dynamics. These trades have sparked considerable attention and regulatory debate in Washington.
Summary
As the SEC and CFTC advance new policy frameworks, the US is gradually establishing clearer regulatory systems for crypto assets and prediction markets. Although these rules remain under review and discussion, their eventual adoption could impact not only the digital asset industry but also reshape the relationship between traditional financial markets and innovative financial products.
