For years, one of the biggest challenges facing crypto businesses in the United States has been uncertainty over which federal regulator should oversee a particular digital asset or activity. That picture is becoming clearer.
The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC)Â are working toward a more defined division of responsibilities, while also coordinating on areas where their jurisdictions overlap. A joint interpretation issued in March provides a significant foundation for that approach, introducing categories for digital commodities, digital collectibles, digital tools, stablecoins and digital securities.
For crypto firms, clearer boundaries could make product development and market planning more predictable. But a divided regulatory landscape does not mean a simple one.
Two Agencies, Different Market Roles
The SEC primarily oversees securities markets, while the CFTC regulates commodities and derivatives markets. Crypto assets can interact with both areas depending on their characteristics and how they are offered, traded or used.
The March interpretation attempts to establish clearer distinctions. It explains how certain non-security crypto assets may become subject to an investment contract and how that relationship can eventually end. It also addresses activities including protocol mining, staking, wrapping and airdrops.
This matters because the same underlying blockchain asset can potentially be involved in different types of transactions, each carrying its own regulatory considerations.
A company developing a token, operating a trading platform or offering derivatives therefore needs to look beyond the asset’s label.
A More Defined Role for the CFTC
The CFTC’s role becomes particularly important where digital commodities and derivatives are involved.
The joint interpretation identifies digital commodities as a distinct category and provides guidance for how the CFTC will administer the Commodity Exchange Act consistently with the SEC’s interpretation.
For firms building spot markets, derivatives products or other blockchain-based financial services, this distinction could influence how products are structured and which regulatory obligations may apply.
The CFTC and SEC have also been working toward greater coordination. Their March memorandum of understanding established a framework for cooperation covering policymaking, examinations, enforcement, market surveillance, reporting and regulatory treatment of emerging technologies.
The objective is not simply to separate the agencies. It is to make their respective roles work together more effectively.
Classification Is Becoming a Business Decision
Regulatory classification can affect almost every stage of a crypto firm’s operations.
Before launching a product, businesses may need to consider:
- How the underlying crypto asset is classified
- Whether an investment contract is involved
- Whether the activity falls within securities laws
- Whether commodities rules apply
- Whether derivatives are being offered
- Which trading venue can legally support the activity
- What registration or exemption requirements may apply
- How custody and customer protections should be structured
The SEC’s 2026 interpretation is particularly significant because it moves beyond a narrow focus on individual enforcement cases and establishes a broader taxonomy for different types of crypto assets.
For businesses, this creates an opportunity to build compliance considerations into product design earlier rather than treating regulatory analysis as a final step before launch.
Trading Platforms May Face a Different Equation
Exchanges and other trading venues could be among the businesses most affected by a clearer SEC-CFTC framework.
A platform may handle multiple asset types with different regulatory characteristics. Some products could fall under securities requirements, while others could be treated as digital commodities. A venue offering both spot and derivatives markets may also have to consider different obligations across its activities.
The agencies’ memorandum specifically addresses reducing friction for dually registered exchanges, trading venues and intermediaries. It also calls for coordination around clearing, margin, collateral and regulatory reporting.
That could eventually make it easier for certain platforms to operate across previously separate regulatory structures.
However, firms should not assume that a clearer division automatically eliminates compliance complexity.
Token Design Still Matters
The new framework also reinforces the importance of understanding what a token actually represents.
A digital asset may itself not be a security, while a particular arrangement involving that asset could still constitute an investment contract. The SEC’s interpretation specifically addresses how a non-security crypto asset can become subject to an investment contract and how it may later separate from the associated issuer representations or promises.
This distinction is particularly relevant for token issuers.
A business cannot necessarily determine its regulatory position simply by choosing a particular token structure or describing an asset as a commodity. The surrounding economic arrangement, representations and activities remain important.
Compliance Teams Will Need to Think in Layers
A divided SEC-CFTC landscape may require businesses to develop more detailed internal frameworks.
Instead of asking only whether a company operates in “crypto,” compliance teams may need to map individual activities to specific regulatory categories.
For example, a business could separate:
Asset classification — What type of crypto asset is involved?
Offering structure — How is the asset issued or distributed?
Trading activity — Where and how can it be bought or sold?
Derivatives exposure — Are futures, options or other derivatives involved?
Custody — Who controls the assets and customer accounts?
Settlement — How are transactions completed and recorded?
Geographic scope — Which U.S. and international jurisdictions are involved?
This layered approach can make regulatory obligations easier to identify as products become more complex.
Greater Clarity Does Not Mean One Rulebook
One of the most important points for crypto firms is that regulatory harmonization is not the same as regulatory consolidation.
The SEC and CFTC are actively coordinating, but they remain separate agencies with different statutory responsibilities.
Their March 2026 interpretation was effective March 23 and provides a shared framework for certain crypto assets and activities. Yet Congress continues to consider broader market-structure legislation, meaning the regulatory environment can continue to develop.
Businesses therefore need systems that can adapt rather than relying on a single permanent classification.
The New Divide Could Bring More Structure
The SEC-CFTC relationship is entering a more structured phase. Instead of treating crypto regulation as a single unresolved question, firms can increasingly examine which assets and activities belong within different regulatory categories.
The March interpretation represents an important step in that direction, while the agencies’ coordination efforts indicate that clearer boundaries do not have to mean disconnected oversight.
For crypto businesses, the practical task is to understand where the lines are drawn, where they overlap and how future rulemaking could change them.
Designing Around the Regulatory Map
The emerging SEC-CFTC framework could give digital asset businesses a more predictable foundation for operating in U.S. markets. At the same time, product classification, transaction structure, trading activity and derivatives exposure can still create different regulatory responsibilities.
That makes regulatory mapping an increasingly important part of digital asset planning.
For companies entering digital assets, regulatory structure can influence technology choices, product design, market selection and operational costs.
Kenson Investments offers digital asset consulting for compliance to help businesses examine how products and activities interact with securities and commodities requirements. Our blockchain and digital asset consultants can also support broader assessments of infrastructure, custody, market access and operational design.
For startups, early planning may be particularly valuable. It can help connect product development with regulatory considerations before significant resources are committed to a particular market structure.
Larger organizations may also consider our comprehensive digital asset consulting services when coordinating legal, operational, technology and portfolio requirements across multiple digital asset activities.
For organizations assessing the changing U.S. crypto landscape, regulatory developments can influence everything from product design to market access. Register now to stay connected with developments shaping digital assets and their evolving role in financial markets.
Disclaimer: The information provided on this page is for educational and informational purposes only and should not be construed as financial advice. Crypto currency assets involve inherent risks, and past performance is not indicative of future results. Always conduct thorough research and consult with a qualified financial advisor before making investment decisions.
“The crypto currency and digital asset space is an emerging asset class that has not yet been regulated by the SEC and the US Federal Government. None of the information provided by Kenson LLC should be considered as financial investment advice. Please consult your Registered Financial Advisor for guidance. Kenson LLC does not offer any products regulated by the SEC, including equities, registered securities, ETFs, stocks, bonds, or equivalents.”
