As legislative efforts in Congress stall, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are advancing distinct initiatives to overhaul digital-asset markets.
On Sept. 17, the SEC issued a five-year, conditional exemption permitting qualifying blockchain platforms to trade specific tokenized U.S. equities without registering as conventional securities exchanges under current regulations. Additionally, the agency granted restricted relief from dealer-registration rules for select liquidity providers. This SEC exemption was initially covered by Reuters.
Within the SEC’s framework, approved Tokenized Securities Venues are permitted to leverage permissioned automated market makers along with liquidity pools for trading tokenized National Market System stocks. Participating tokens must satisfy specific regulatory criteria, and trading platforms must adhere to standards concerning transparency, recordkeeping, technological security, and transaction oversight. Furthermore, the SEC order mandates the public disclosure of designated trading data.
This exemption aims to let the SEC monitor blockchain securities platforms and gather insights that may shape future long-term oversight. SEC Commissioner Mark Uyeda noted that this strategy permits supervised experimentation while the agency assesses how tokenization impacts trading, settlement, and ownership systems. Public comments on the framework are currently being solicited by the SEC.
Conversely, the CFTC is pursuing a more sweeping strategy regarding cryptocurrencies.
The derivatives watchdog has delivered a proposed crypto regulatory package to the White House Office of Information and Regulatory Affairs for evaluation. Entitled “Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets,” this initiative seeks to set guidelines for digital-asset transactions and marketplaces using the CFTC’s current powers. The filing was first highlighted by The Block.
Specifics regarding the CFTC plan remain withheld from the public. Following the White House assessment, the measure is anticipated to go back to the CFTC for a formal vote and public feedback phase before any permanent regulations can be implemented. CoinDesk noted that the exact scope of the initiative, along with the precise assets and entities it addresses, is still uncertain.
Simultaneously, the CFTC granted no-action relief for specific passive software developers—such as certain cryptocurrency wallet interfaces—granting them permission to link consumers to regulated derivatives exchanges under defined conditions, bypassing the need to register as introducing brokers.
These regulatory actions arrive on the heels of the Senate’s Sept. 15 procedural vote concerning the Clarity Act. The measure garnered 50 affirmative votes and 49 opposing votes, leaving it 10 votes shy of the 60 required to proceed. The bill did not face a vote for final enactment.
Because congressional rulemaking remains deadlocked, both the SEC and CFTC are leveraging their pre-existing statutory powers to tackle segments of the oversight puzzle on their own. While these regulatory steps cannot substitute for comprehensive legislation capable of defining broader agency jurisdiction or statutory mandates, they will likely shape the functioning of specific U.S. digital-asset sectors while lawmakers continue talks.
Consequently, oversight is evolving along a dual path: Congress continues to debate wide-ranging bills, whereas federal authorities are pressing ahead with exemptions, rulemakings, and alternative measures built on current law.
Frequently Asked Questions
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Why are the SEC and CFTC acting independently on crypto rules?
The regulatory actions come just days after the Senate failed to advance the Clarity Act, leaving comprehensive congressional legislation stalled. As a result, the agencies are using their existing statutory authorities to shape portions of the digital-asset market. -
What did the SEC’s Sept. 17 exemption do?
The SEC granted a five-year, conditional exemption allowing qualifying blockchain venues to trade certain tokenized U.S. stocks without registering as traditional securities exchanges, alongside limited relief for certain liquidity providers from dealer-registration requirements. -
What is the status of the CFTC’s crypto rulemaking package?
The CFTC has submitted a proposed package titled “Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets” to the White House’s Office of Information and Regulatory Affairs for review. Specific details have not yet been publicly disclosed, and the proposal will still need a vote and public comment period after White House review. -
How many votes did the Clarity Act receive in the Senate?
The Senate’s procedural vote on the Clarity Act received 50 votes in favor and 49 against, which was 10 votes short of the 60 needed to advance.
