- It reported that the U.S. virtual asset regulatory environment is being reorganized ahead of 2026 around two pillars: the SEC's policy push and the CFTC's expanded role.
- The SEC is actively pursuing market regulation with policies including a token taxonomy, Project Crypto, and approvals of virtual asset ETFs.
- The CFTC is focusing on expanding regulatory clarity and the listing of spot virtual asset products, but both agencies face the enforcement challenge of an insufficient number of commissioners.
- The article was summarized using an artificial intelligence-based language model.
- Due to the nature of the technology, key content in the text may be excluded or different from the facts.
The U.S. virtual asset (cryptocurrency) regulatory environment is being reshaped ahead of 2026 around two pillars: the Securities and Exchange Commission (SEC) pursuing an active policy push and the Commodity Futures Trading Commission (CFTC) strengthening its stature.
According to crypto-focused media The Block on the 26th (local time), in the second year of the Trump administration the SEC and CFTC are moving away from past jurisdictional conflicts and strengthening a cooperative stance while reorganizing the virtual asset regulatory framework. During the Biden administration the two agencies fought so-called "turf wars" over virtual asset jurisdiction, but recently they have formalized cooperation by issuing joint guidelines one after another.
Howard Fisher, a partner at Moses & Singer, said, "For as long as I can remember, the SEC and CFTC are substantively cooperating," and "this change in the relationship will drive the regulatory agenda in 2026."
The SEC is advancing a vast policy agenda ahead of 2026. SEC Chair Paul Atkins is promoting the introduction of a "token taxonomy" that distinguishes securities from non-securities and "Project Crypto," which restructures digital asset rules across the board.
It also announced plans to simplify the procedures for launching virtual asset products through an innovation exemption regime.
This year the SEC approved listing standards for exchange-traded funds (ETFs) tracking virtual assets such as Dogecoin (DOGE), Solana (SOL), and XRP (XRP), and offered the interpretation that liquid staking and proof-of-stake (PoS) staking do not constitute securities trading.
Recently, it also issued guidance on broker-dealers' custody methods for virtual asset securities.
The tokenization of real-world assets has also emerged as a major SEC focus. Fisher commented, "Continuous 24-hour trading itself is attractive, but the regulatory implications are complex," and "tokenization regulation is an area that will require time."
The CFTC is likewise expanding its regulatory influence. Through a "Crypto Sprint," the CFTC has been clarifying regulations, withdrew prior guidance related to "actual delivery" of spot virtual assets, and created a framework allowing exchanges to list spot virtual asset products that are subject to regulatory approval.
After a process led by Acting Chair Caroline Pham, Michael Selig will lead the CFTC as the new chair. Selig, a former senior counsel to the SEC's crypto task force, is taking office at a time when Congress is considering giving the CFTC leadership of virtual asset regulation.
Rebecca Liao, CEO of Saga, said, "The CFTC could become the most powerful agency in virtual asset regulation," adding, "In particular, Bitcoin (BTC) is already classified as a commodity, so if the CFTC focuses on it, it could affect the broader market."
However, both agencies face the challenge of an insufficient number of commissioners. The SEC currently has only three commissioners in office, including the chair, and the CFTC is also being led by a lone chair. Industry participants say future appointments will determine the enforcement effectiveness of regulation.
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