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SEC and CFTC split oversight of crypto markets
The SEC generally oversees crypto tokens that function like investments, while the CFTC covers crypto treated like commodities and related derivatives.
Crypto regulation in the United States is split mainly between two agencies, the Securities and Exchange Commission and the Commodity Futures Trading Commission, according to The Block.
In broad terms, the SEC regulates crypto assets that resemble investments in a company, while the CFTC focuses on crypto assets that function more like commodities, including futures and other derivatives tied to those assets.
The difference in how each regulator characterizes a crypto asset, whether investment-like or commodity-like, helps determine which agency’s rules apply to that part of the market.