- “Project Crypto” to clarify DeFi rules and strengthen U.S. crypto leadership.
- The House recently passed the CLARITY Act to define the SEC and the CFTC’s crypto oversight roles.
The U.S Commodity Futures Trading Commission (CFTC) has announced that it’s set to launch “Project Crypto.” According to Caroline Pham, CFTC’s Acting Chair, this initiative is expected to implement key recommendations from the recent Trump administration’s crypto policy report.
These recommendations are anticipated to clarify the classification of cryptocurrencies, set registration standards for Decentralized Finance (DeFi) entities, and explore crypto integration into the existing regulatory framework.
Other recommendations entail collaborative efforts with agencies like Treasury and SEC on a joint rulemaking and innovation sandbox. These efforts aim to position the U.S as a global leader in digital assets regulation.
Paul S. Atkins, the Chairman of the U.S. Securities and Exchange Commission, is also pushing to attract crypto firms back to the U.S. This move has already attracted companies including OKX, Kraken, Nexo, and Bitmain.
The initiative stems from the crypto policy report, which contains 18 recommendations. Among the proposals is granting the CFTC more authority over non-security digital assets and enabling broader services through unified digital platforms.
See Related: Survey Shows Rising Interest In Crypto Ahead Of 2024 Election, Says Grayscale
Bridging The Divide: New Legislation Clarifies SEC And CFTC Jurisdiction
The House of Representatives recently passed the CLARITY Act (Crypto Legal Accountability, Reporting, and Transparency Investment Act). This bill is expected to establish a regulatory framework for digital assets other than stablecoins and end the SEC and CFTC jurisdictional conflict over digital assets in the U.S.
American Consumer & Investor Institute shared in a statement that “The CLARITY Act turns the page by establishing commonsense legal and regulatory frameworks that will benefit all consumers, investors, and market participants.”
According to experts and supporters of the Committee’s efforts, this legislation will establish clear criteria for classifying digital assets as either securities or commodities. Moreover, the Act is projected to enhance reporting standards, increase transparency from crypto firms, and reduce regulatory uncertainty.
