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\n\t\t\t\t\t\t\t\t\tLike the SEC, the derivatives trading regulator, the CFTC, is also working to regulate prediction markets.\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
The United States Securities and Exchange Commission (SEC) has inched closer to creating guardrails to ascertain how cryptocurrencies are regulated.<\/p>\n
In a recent commission-level guidance submitted<\/a> to the White House\u2019s Office of Information and Regulatory Affairs (OIRA), the SEC outlined how securities laws can be applied to crypto. If followed, the new guidelines could affect how crypto-focused companies register and operate their businesses in the country.<\/p>\n According to the OIRA\u2019s website, the guidance was labeled as the \u201cApplication of the Federal Securities Laws to Certain Types of Crypto Assets and Certain Transactions Involving Crypto Assets.\u201d<\/p>\n The website shared sparse details about the SEC\u2019s proposal. Still, an SEC spokesperson informed<\/a> Bloomberg that the financial agency \u201cwill consider interpretive guidance around a token taxonomy for crypto assets.\u201d This means that factors such as a crypto\u2019s inherent properties, behavior, and use cases would be considered to determine whether securities laws apply or not.<\/p>\n With these guidelines in place, crypto firms would know how to proceed with registration, operations, and investor engagement.\u00a0It is worth noting that commission-level guidance has more power than staff-level guidance. Still, it falls short of the requirements to become a rule, which include processes such as public notice and comment.<\/p>\n The latest move aligns with Paul Atkins\u2019 goal of bringing crypto-friendliness to the country since he became the SEC chairman. A few weeks ago, he hinted<\/a> at the agency\u2019s commitment to establishing structural crypto regulations despite falling cryptocurrency prices.<\/p>\n The SEC is not the only Wall Street regulator advocating<\/a> for a crypto-friendly regulatory framework. On March 2nd, the Commodity Futures Trading Commission (CFTC) submitted<\/a> a measure to the White House\u2019s OIRA on prediction markets.<\/p>\n Michael Selig, the CFTC chairman, shed some light on the prediction markets\u2019 measure, saying:<\/p>\n \u201cWe\u2019re going to be setting very clear standards as to what can be self-certified in our markets and what cannot and how to evaluate the different products that are offered in the space.\u201d<\/p>\n<\/blockquote>\n The CFTC\u2019s latest move comes amid heightened attention investors give to prediction markets, popularized by leading platforms Polymarket and Kalshi.<\/p>\n LIMITED OFFER for CryptoPotato readers at Bybit: Use this link<\/a> to register and open a $500 FREE position on any coin!<\/b><\/p>\n<\/div>\n<\/div>\nNew Guidelines for Crypto Market<\/h2>\n
CFTC Calls for Regulation of Prediction Markets<\/h2>\n
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