White House Crypto Framework Clarifies SEC and CFTC Roles, Easing Legal Uncertainty for US Firms

New Federal Guidance Aims to End Regulatory Confusion in U.S. Crypto Markets

After years of ambiguity and fragmented enforcement, the U.S. government is moving toward more structured oversight of digital assets. A long-awaited report released by President Trump’s Working Group on Digital Assets outlines a new policy framework designed to clarify the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC)—a move legal experts say could remove one of the biggest roadblocks to institutional adoption of crypto in the U.S.

SEC and CFTC to Get Defined Roles in Crypto Regulation

One of the central recommendations in the White House’s report is to assign CFTC oversight of spot crypto markets, while the SEC retains its role in overseeing securities offerings and enforcement. The goal is to eliminate overlapping jurisdiction and contradictory rulings that have plagued the industry for years.

“Allowing each agency to regulate what aligns with its expertise will prevent duplication, legal fragmentation, and confusion,” said Edwin Mata, blockchain lawyer and CEO of tokenization platform Brickken.

Mata emphasized the importance of consistent legal interpretations in the U.S. legal system, where precedent and case law carry significant weight. The newly proposed division, he argues, could create a foundation for coherent jurisprudence and enable courts and companies alike to operate with clearer legal expectations.

Ripple Case Offers Critical Legal Backdrop

The policy update comes just weeks after the conclusion of one of crypto’s most closely watched legal battles—the SEC’s lawsuit against Ripple Labs. Filed in December 2020, the case alleged that Ripple conducted a $1.3 billion unregistered securities offering through XRP sales.

In March 2025, the SEC dropped its appeal, effectively concluding the case and affirming Judge Analisa Torres' earlier ruling that XRP is not a security in retail sales, although institutional sales were treated differently. Ripple was fined $125 million, and on June 12, the SEC and Ripple jointly requested the release of escrowed funds to cover settlement costs.

The Ripple case highlighted the need for clearer legal distinctions, and the White House report appears to be a direct response to such high-profile confusion.

Source: whitehouse.gov

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Industry Reacts: Positive Step, But More Work Needed

Analysts from crypto exchange Bitfinex described the report as “a step in the right direction” and a potential unlock for broader U.S. crypto innovation.

“Regulatory vagueness has long been a hurdle for U.S. crypto firms,” they said, pointing to the proposed CLARITY Act and the principle of ‘same risk, same rules’ as strong guiding themes in the new policy.

However, they also noted gaps in the recommendations, particularly in areas such as:

• Crypto custody rules for banks and service providers

• A missing strategy for the rumored U.S. Bitcoin reserve

• Tensions within the crypto community over increased enforcement measures

Despite these concerns, the framework is largely seen as a positive signal for startups and investors seeking legal stability in the digital asset space.

Conclusion: Pathway to Regulatory Maturity or More Bureaucratic Gridlock?

The White House’s crypto report may mark a turning point in how the U.S. regulates digital assets, offering long-sought clarity that could support innovation while maintaining investor protections.

While implementation and further legislative action will be key, the SEC-CFTC division of authority could be the most significant regulatory development since the early days of crypto policymaking.

With court rulings like Ripple’s helping shape legal precedent, and growing bipartisan interest in crypto legislation, 2025 could become the year the U.S. moves from regulatory uncertainty to structured crypto governance.

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