SEC Advances Major Crypto Securities Plan to White House for Approval

The US SEC has sent the White House an interpretive guidance on the application of the federal securities laws to crypto. The new proposal also included plans for the regulation of prediction markets.

SEC Outlines Plan to Apply Securities Rules to Crypto

Regulators are taking further steps in regulating the crypto space and the growing prediction markets, and the measures are expected to have implications for the overall financial markets.

After months of public statements by regulators and political maneuvering in Congress, the Securities and Exchange Commission, which regulates the US Stock Market, and the Commodity Futures Trading Commission, which regulates derivatives trading, have now submitted their plans to the White House.

This comes after SEC chair Paul Atkins’ announcement of the commission’s roadmap for crypto securities. He also stated that the regulator is going to consider interpretive guidance for a token taxonomy for crypto assets. This would be in line with market structure legislation to ensure that innovators and investors understand their obligations.

In theory, token taxonomy could lead to the development of formal categories of different types of crypto assets. This could, for example, determine whether a particular token is under the jurisdiction of the SEC or the CFTC. This could be key to how crypto firms disclose and operate.

The crypto securities proposal does not require a vote by the SEC. It is also perceived to be more likely to be enforceable than staff-level statements.

Prediction Market Regulation Included in White House Plan

In another vein, the White House has been considering a bill on prediction markets by the CFTC. This comes after CFTC Chairman Michael Selig said that the agency intends to proceed with an advanced notice of proposed rulemaking on prediction markets in the near future.

“We’re going to be setting very clear standards as to what can be self-certified in our markets and what cannot and how to evaluate the different products that are offered in the space,” Selig said.

While the SEC progresses the crypto securities plan, a new coalition group, ‘Gambling is not investing’, is opposing the growth of prediction markets. The group claims that prediction markets are breaking the law. They said the markets are allowing illegal sports betting and should be strictly complying with state and tribal gaming laws.

Notably, independent government agencies such as the SEC and the CFTC were not required to submit new rules to the White House for review, but the Trump administration announced in 2025 that it expects all executive branch agencies to do so, including the US financial regulators.