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For years, the US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have struggled with crypto regulation and jurisdictional clashes. Unfortunately, this has resulted in uncertainty for many businesses, including Web3 firms. 

According to history, the SEC has treated most digital assets as securities, while the CFTC has maintained that cryptocurrencies like Bitcoin fall under its commodity oversight. This unclear regulatory territory has led to inconsistent enforcement and policy confusion.

US SEC and CFTC To Work Together

At a recent fintech symposium in Washington, D.C., the CFTC’s leadership revealed a renewed effort to collaborate with the SEC. 

American journalist Eleanor Terrett reported on X that Acting Chair Caroline Pham stressed the implications of fixing the barrier between the two regulatory agencies. This will help them address digital asset oversight more effectively and cohesively. 

Furthermore, SEC Commissioner Hester Peirce, known for advocating more transparent crypto regulations, supported this approach. This points to the SEC’s realization of its regulatory limits, especially in the current government. 

The SEC’s newly established Crypto Task Force is now working to define which areas fall outside its authority. This is a pivotal step toward more structured oversight.

Crypto Regulation Outlook: US SEC and CFTC

Historically, the SEC has focused on enforcement, treating most tokens as securities and pursuing cases against crypto firms for unregistered offerings. 

The CFTC, the other hand, has regulated derivatives and fraud in commodity markets while taking a more flexible approach to crypto spot markets. 

Recent legislative proposals, such as FIT21, intend to clarify these roles by giving the CFTC greater control over decentralized assets. In contrast, the US SEC would oversee securities-like tokens. 

Importantly, this current engagement between regulators and policymakers shows a push for a more consistent framework for exchanges’ operations.

Future of Crypto Regulation Under President Trump

With President Donald Trump’s return to office, the regulatory approach has been tilting toward a more industry-friendly stance. 

For context, the previous Trump administration favored lighter-touch regulation. In addition, the Republican lawmakers have historically supported the CFTC’s approach over the SEC’s aggressive enforcement. 

With President Trump returning to office, the crypto community has seen history repeated, with key areas changing. For example, the long-standing Coinbase lawsuit is closed as well as those of other top crypto firms. Also, Binance announced its return to the American crypto market last month amid favorable policies.

While no immediate policy changes are confirmed, the expectation is that regulation of crypto firms will improve. There might be a stronger emphasis on fostering innovation rather than strict compliance measures.

In addition, the upcoming White House Crypto Summit on March 7 will bring together industry leaders, investors, and policymakers. This marks another significant move by the Trump administration to support the crypto community, less than 100 days into his presidency.

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