SEC Sends Crypto Securities Guidance and Prediction Market Plan to the White House

The U.S. Securities and Exchange Commission (SEC) has submitted new interpretive guidance to the White House outlining how federal securities laws could apply to cryptocurrencies. The proposal also addresses the growing prediction markets sector, signaling another major step toward clearer regulatory oversight of digital assets and emerging financial products in the United States.

The initiative follows months of discussions among regulators, lawmakers, and industry stakeholders about how best to regulate the rapidly evolving crypto market. The SEC, which oversees the U.S. stock market, worked alongside the Commodity Futures Trading Commission (CFTC), the agency responsible for regulating derivatives trading, to deliver their recommendations.

SEC Chair Paul Atkins previously announced a regulatory roadmap for crypto securities, highlighting the need for clearer guidelines. As part of this roadmap, the commission is considering interpretive guidance on a “token taxonomy,” which would categorize different types of crypto assets. This classification system could help determine whether a specific digital token falls under the jurisdiction of the SEC or the CFTC.

A structured token taxonomy could play a significant role in shaping the future of crypto regulation. By defining categories of digital assets, regulators aim to give crypto companies, developers, and investors a clearer understanding of their compliance obligations. This may influence how crypto projects disclose information, operate within U.S. markets, and interact with financial regulators.

Notably, the SEC’s crypto securities proposal does not require a formal commission vote. Because it is issued as interpretive guidance rather than a new rule, it could potentially be implemented more quickly and may carry greater authority than standard staff-level statements.

Alongside the crypto guidance, the White House is also reviewing plans related to prediction markets, following proposals from the CFTC. CFTC Chairman Michael Selig stated that the agency plans to issue an advanced notice of proposed rulemaking aimed at establishing clearer standards for products offered in prediction markets.

According to Selig, the new framework will define what products can be self-certified and how regulators should evaluate market offerings. The goal is to create more transparent rules for platforms that allow users to speculate on future events.

However, the growth of prediction markets has sparked controversy. A coalition called “Gambling is Not Investing” has voiced opposition, arguing that some prediction market platforms may enable illegal sports betting activities. The group claims such markets should comply strictly with existing state and tribal gaming laws.

Although independent agencies like the SEC and CFTC are not traditionally required to submit regulatory proposals to the White House, the Trump administration announced in 2025 that all executive branch agencies, including financial regulators, are expected to submit new rules for review. The latest proposals could significantly influence the regulatory landscape for cryptocurrency and prediction markets in the U.S. financial system.