BREAKING: White House Shakes Up Crypto Oversight with SEC-CFTC Power Split

The Biden administration just dropped a regulatory bombshell—Wall Street's two biggest cops are getting carved-up crypto jurisdictions. Here's why it matters.

SEC vs. CFTC: The New Crypto Cold War

Sources confirm the White House wants the SEC to police security tokens while the CFTC handles commodities (read: Bitcoin, Ethereum). Finally—some clarity after years of enforcement-by-lawsuit theater.

Market Impact? Watch the Alts

Smaller tokens could get crushed in the crossfire. The SEC's infamous "regulation by litigation" approach might now focus squarely on ICO-era projects. Meanwhile, DeFi degens are already memeing this as "the great shitcoin purge."

Washington's Worst-Kept Secret

Let's be real—this "proposal" has been brewing since Gensler started treating crypto exchanges like piñatas. Now the administration's scrambling to look proactive before 2024 elections. Classic political arbitrage.

One cynical take? This "split" conveniently lets both agencies claim victory while avoiding actual legislation. Because nothing unites DC like kicking the can down the road—and collecting lobbying fees along the way.

Policy report outlines new regulatory structure

President Donald Trump’s Working Group on Digital Assets released its recommendations this week, focusing on market structure, banking regulation, and reinforcing the US dollar’s dominance through stablecoins and updated tax laws.

A centerpiece of the report is the proposal to give the CFTC authority over spot markets for digital assets, while the SEC WOULD continue overseeing securities markets.

Regulatory clarity sought for bitcoin firms

Edwin Mata, blockchain lawyer and CEO of Brickken, highlighted the significance of the move, stating:

“Letting each body oversee the instruments that best align with their expertise avoids duplication and confusion, allowing for consistent legal interpretations.”

Mata added that this division is vital in the US, where legal precedent plays a dominant role.

Previous agency overlap had led to fragmented legal interpretations and left courts to resolve disputes.

Industry reaction and bitcoin reserve questions

Analysts from Bitfinex argue that the recommendations may address a key hurdle to mainstream adoption by providing boundaries for regulatory enforcement.

They noted lingering concerns, however, about continued SEC enforcement and the absence of details on a promised US Bitcoin reserve. The analysts stated:

“[Concerns include] the report’s push for intensified SEC enforcement against non-compliant firms, absence of details on a promised US bitcoin reserve, and potential fractures in the crypto community over regulatory stringency, as noted in recent analyses.”

Additional recommendations regarding custody rules for bitcoin service providers are still anticipated as the US regulatory landscape evolves.