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The US Securities and Exchange Commission has sent interpretive guidance to the White House explaining how federal securities laws may apply to cryptocurrencies. The proposal could introduce a formal token classification framework that determines which digital assets fall under SEC jurisdiction and how crypto firms must operate in US markets.
The document, titled “Commission Interpretation on Application of the Federal Securities Laws to Certain Types of Crypto Assets and Certain Transactions Involving Crypto Assets,” reached the White House on March 3. It now sits at the pre-rule stage for interagency review.
Meanwhile, the guidance arrives as US financial regulators advance parallel efforts to regulate prediction markets and clarify oversight across emerging digital financial platforms.
The SEC submission entered review through the White House Office of Information and Regulatory Affairs. The office published limited details about the interpretation on its website.
Bloomberg reported that the proposal likely introduces a token taxonomy. This framework could classify different crypto assets and determine which ones qualify as securities. Such classification would influence how crypto firms interact with regulators.
It could shape registration requirements, disclosure obligations, operational practices, and investor engagement. Commission-level interpretations carry regulatory weight within federal agencies. Bloomberg noted that these interpretations do not require a commission vote.
They often prove more enforceable than staff-level statements. As a result, the document may shape how regulators interpret crypto transactions across US markets. Since taking office, SEC Chairman Paul Atkins has placed digital asset regulation among the agency’s priorities. Atkins previously stated that congressional legislation would offer the best framework.
He also indicated the SEC could move forward independently if lawmakers fail to deliver clear rules. Would this interpretive framework become the foundation for US crypto oversight? Earlier this year, lawmakers attempted to advance a crypto market structure bill. The legislation stalled in the Senate after disagreements between banks and crypto companies.
The dispute centered on whether stablecoin issuers should offer reward programs. To address the issue, the White House began hosting meetings between banking representatives and crypto firms.
While the SEC guidance moves through review, the Commodity Futures Trading Commission has introduced its own regulatory initiative. The agency submitted a measure on prediction markets to OIRA earlier this week.
The filing followed remarks from CFTC Chairman Michael Selig during the Milken Institute’s Future of Finance event on Tuesday. Selig said the agency will soon release an advanced notice of proposed rulemaking. He explained that regulators plan to define clear standards for products offered in prediction markets. The rules will address which contract platforms can self-certify for trading.
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Selig also stated that the framework will outline how regulators evaluate different products within the market. According to him, the agency wants to clarify oversight before the sector expands further. The CFTC plans to resolve differences between federal and state interpretations of prediction markets. Several states have already taken enforcement actions against prediction market platforms.
Authorities argued that platforms such as Kalshi and Polymarket may have violated state gaming and gambling laws. State regulators focused on sports-related event contract markets offered through those platforms. Selig said the CFTC will issue regulatory guidance soon. The agency expects the upcoming rulemaking process to provide clearer standards for the sector.
Regulatory momentum has also sparked opposition from outside groups. A coalition known as “Gambling Is Not Investing” has challenged the growth of prediction markets. The group argues that some prediction market platforms allow illegal sports betting activities. Members say the markets should comply with state and tribal gaming laws.
Meanwhile, the White House continues reviewing regulatory proposals submitted by federal agencies. The review process now includes independent financial regulators. Historically, agencies such as the SEC and the CFTC did not submit rulemaking proposals for White House review. That process changed in 2025 when the Trump administration expanded oversight requirements.
Under the updated policy, all executive branch agencies must send regulatory proposals to the White House before implementation. The requirement now applies to US financial regulators as well. As a result, both the SEC’s (Securities and Exchange Commission) crypto interpretation and the CFTC's (Commodity Futures Trading Commission) prediction market proposal now move through the same federal review pipeline.
The article shows that the SEC has moved closer to defining how federal securities laws apply to crypto assets. At the same time, the CFTC is preparing new prediction market rules, while the White House review could shape how both sectors operate next.
