The US SEC is proposing guidelines on how securities laws can be applied to crypto

Like the SEC, the derivatives trading regulator, the CFTC, is also working to regulate prediction markets.

The U.S. Securities and Exchange Commission (SEC) has moved closer to creating guardrails to control how cryptocurrencies are regulated.

In a recent directive at committee level submitted To the White House Office of Information and Regulatory Affairs (OIRA), the SEC outlined how securities laws could be applied to crypto. If followed, the new guidelines could impact how crypto-focused companies register and operate their businesses in the country.

New guidelines for crypto market

According to the OIRA website, the guidance was labeled the “Application of the Federal Securities Laws to Certain Classes of Crypto Assets and Certain Transactions Involving Crypto Assets.”

The website shared scant details about the SEC’s proposal. Still, an SEC spokesperson says informed Bloomberg that the financial agency will “consider interpretive guidance around a symbolic taxonomy for crypto assets.” This means that factors such as a crypto’s inherent properties, behavior, and use cases are taken into account to determine whether securities laws apply or not.

With these guidelines, crypto companies would know how to proceed with registration, operations, and investor engagement. It is worth noting that guidance at the committee level has more power than guidance at the staff level. Still, it doesn’t meet the requirements to become a rule, which include processes such as public notice and comment.

The latest move is in line with Paul Atkins’ goal of bringing crypto-friendliness to the country since becoming chairman of the SEC. A few weeks ago, he hinted at the agency’s commitment to introducing structural crypto regulations, despite falling cryptocurrency prices.

CFTC calls for regulation of prediction markets

The SEC isn’t the only Wall Street regulator advocating for a crypto-friendly regulatory framework. On March 2, the Commodity Futures Trading Commission (CFTC) submitted a measure for the White House OIRA on prediction markets.

You might also like:

Michael Selig, the chairman of the CFTC, shed some light on the prediction markets metric, saying:

“We are going to set very clear standards about what can be self-certified in our markets and what cannot, and how we should evaluate the different products offered in the space.”

The CFTC’s latest move comes amid increased attention investors are paying to prediction markets, popularized by leading platforms Polymarket and Kalshi.