The US Securities and Exchange Commission (SEC) has garnered all the attention these days for approving the first Bitcoin exchange-traded funds (ETFs), and it seems other regulators are becoming envious. The Commodity Futures Trading Commission (CFTC) also wants to be in the spotlight and have a presence in the crypto ecosystem.

Related: What Does Spot Bitcoin ETF Mean for Investors?

The regulator has formed a team called the Digital Asset Markets Subcommittee. Its goal is to advise the CFTC on crypto regulations. Its parent division – CFTC’s Global Markets Advisory Committee – voted on March 6 to advance the subcommittee’s crypto taxonomy that it considers to offer regulatory clarity never seen before. The new team hopes that its framework will be used for future crypto regulations.


Apparently, the new taxonomy explains everything about crypto, bringing clear standards for a digital asset regulatory framework. It covers all cryptos, including stablecoins.

Caroline Butler, global head of digital assets at BNY Mellon, reportedly said during the committee’s meeting:

A good friend of mine always says words make worlds, and we are hoping that these words will make regulations where appropriate.

The crypto industry has become hoarse from years of screaming for regulatory clarity. Last year, Coinbase, the largest US crypto exchange by trading volume, even pondered leaving the US market because of the regulatory vagueness.

Despite a lack of clear rules for the crypto market, financial watchdogs haven’t hesitated to bring charges against many crypto firms. For many, this approach doesn’t make sense – why being so severe if there are no clear rules in the first place?


At least this new taxonomy is claimed to have “consistent language for participants in the digital asset ecosystem to promote innovation, identify and address risk considerations, and enable effective regulatory understanding.”

Related: Binance and CFTC Settlement: What’s a Decision?

The CFTC’s team has been seeking feedback from regulators worldwide. CFTC Commissioner Caroline Pham stated:

The quality of the output is again also tremendous given the socialization and the feedback from not just the members, many of which are global, but also as I understand it from international organizations and regulatory counterparts all around the world.

Let’s hope it has got some guidance from Europe as well, as it’s the first major jurisdiction to implement an actually comprehensive crypto regulatory framework. It’s called Markets in Crypto-Assets Regulation (MiCA).

CFTC Boss Calls for Crypto Regulation

While the CFTC’s committee met to discuss its new taxonomy, the regulator’s boss made his annual appearance before the House Agriculture Committee. Rostin Behnam reiterated his call for Congress to pass legislation that would clarify how to regulate the crypto industry and how much of the crypto pie belongs to the CFTC and the SEC.

More Info: 

He said that in fiscal year 2023, which ended in October last year, the regulator had brought 47 actions involving conduct related to crypto, which is about half of all CFTC actions filed.

For Behnam, this is “a staggering statistic given the fact that no federal agency retains any direct regulatory authority over the underlying or cash digital commodity market.”

Is this the beginning of a regulatory tug-of-war over the crypto industry? Who will win: the SEC or the CFTC? We will keep you updated on this.


Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice of this sort, HODL FM strongly recommends contacting a qualified industry professional.