SEC Submits Interpretive Guidance on Crypto Token Classification as CFTC Advances Prediction Markets Rules

The U.S. Securities and Exchange Commission (SEC) has submitted commission-level interpretive guidance to the White House outlining how federal securities laws could apply to cryptocurrencies, signaling continued regulatory efforts to clarify oversight of digital assets in the United States.

The document, titled “Commission Interpretation on Application of the Federal Securities Laws to Certain Types of Crypto Assets and Certain Transactions Involving Crypto Assets,” was submitted on March 3 and is currently in the pre-rule stage undergoing interagency review at the Office of Information and Regulatory Affairs (OIRA).

While limited details are available in the public filing, reporting from Bloomberg suggests the guidance may focus on establishing a token taxonomy, a framework for categorizing crypto assets to determine which fall under SEC jurisdiction as securities and which may fall outside its regulatory scope.

Clarifying Regulatory Boundaries for Crypto Assets

If implemented, such guidance could affect how crypto companies register with regulators, meet disclosure obligations, and structure digital asset offerings. The framework may also shape how firms interact with investors and operate within U.S. capital markets.

Commission-level interpretations carry more regulatory weight than staff statements and do not necessarily require a formal commission vote, making them a potentially faster path to regulatory clarity.

SEC Chairman Paul Atkins has previously emphasized that digital asset oversight remains a priority for the agency. While he has expressed preference for comprehensive legislation from Congress, he has also indicated that the SEC could proceed with regulatory guidance if legislative progress stalls.

Efforts to pass a crypto market structure bill in the U.S. Senate have slowed this year, partly due to disagreements between traditional banking institutions and crypto firms over stablecoin reward structures. The White House has reportedly hosted discussions between both sectors to address the issue.

CFTC Advances Rulemaking on Prediction Markets

Separately, the Commodity Futures Trading Commission (CFTC) has submitted a proposal related to prediction markets to OIRA, marking another regulatory development affecting emerging digital trading platforms.

The move follows remarks by CFTC Chairman Michael Selig at the Milken Institute’s Future of Finance event, where he indicated that the agency intends to issue an advanced notice of proposed rulemaking in the near term.

According to Selig, the initiative will establish clearer standards on which market products can be self-certified and how contracts offered on prediction platforms should be evaluated.

Addressing State and Federal Regulatory Gaps

The CFTC’s upcoming rulemaking is also expected to address inconsistencies between federal oversight and state-level enforcement actions targeting prediction market platforms.

Several states have recently taken action against platforms such as Kalshi and Polymarket, arguing that some event-based contracts — particularly sports-related markets — violate state gaming or gambling laws.

Federal regulators say the forthcoming guidance aims to bring clearer regulatory standards to the sector.

“We’re setting clear rules and regulations,” Selig said during the event, noting that additional guidance on prediction markets is expected soon.