Digital assets have created a jurisdictional tug of war between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over whether cryptocurrencies should be regulated as commodities or securities. On the third imaginary side of that rope sit those who say cryptocurrencies are neither, and need new bespoke rules.
While the SEC stands its ground that existing securities rules apply to cryptocurrencies and that no additional rulemaking is required, the commission’s sometimes selective enforcement actions continue to fuel confusion.