As of April 2025, U.S. cryptocurrency regulation is undergoing significant changes, reflecting shifts in political leadership and evolving market dynamics. Here’s an overview of the current landscape:
🏛️ Regulatory Framework
1. Financial Innovation and Technology for the 21st Century Act (FIT21):
Passed by the House in May 2024, FIT21 aims to delineate regulatory responsibilities between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). Under this act:
CFTC would oversee digital assets deemed commodities, typically those that are decentralized.
SEC would regulate digital assets classified as securities, often those with centralized control or profit expectations.
The bill also proposes exemptions for certain stablecoins from both agencies’ oversight, except in cases of fraud or specific activities by registered firms.
2. Digital Commodities Consumer Protection Act (DCCPA):
This proposed legislation seeks to grant the CFTC authority over cryptocurrency trading, aiming to enhance consumer protections and market integrity.
🏛️ Agency Roles and Jurisdiction
CFTC: Recognizes cryptocurrencies like Bitcoin and Ether as commodities, focusing on regulating derivatives markets and addressing fraud in spot markets.
SEC: Applies the Howey Test to determine if a digital asset qualifies as a security, thereby falling under its jurisdiction. The SEC has actively pursued enforcement actions against entities conducting unregistered securities offerings.
