Washington tightens crypto rules as Trump seeks clarity

President Trump has pressed Congress and federal agencies to establish a single set of federal standards for digital assets while the Securities and Exchange Commission released a package of new rules and the Commodity Futures Trading Commission sent compliance letters to trading firms and intermediaries. Officials in Washington described the actions as efforts to reduce legal uncertainty for market participants and to strengthen investor protections.

The SEC’s rules set new registration, disclosure and recordkeeping expectations for entities that offer trading, custody or investment services tied to digital assets. The package describes when tokens or token-based funds may be treated as securities that require registration and imposes standards on broker-dealers and platforms that operate like exchanges or make markets in digital assets.

The CFTC focused its communications on trading in crypto derivatives. The agency reminded firms of their obligations under commodities and derivatives law, highlighted requirements for firms that offer leverage or margin and warned that registered futures commission merchants and swap dealers must meet existing compliance standards to avoid enforcement action.

Regulators said the guidance and rules aim to clarify which activities fall under securities law and which fall under commodities and derivatives statutes, and to make clear when market intermediaries must register with a federal agency. The agencies pointed to recent enforcement actions as examples of how they will apply the new rules and letters.

Regulators indicated the rules and warnings are effective immediately for firms already operating in the market. Newly launched products and platforms will need to follow the updated requirements when they enter the market. Exchanges that list a broad range of tokens, derivatives venues that offer margin and funds that package tokens for retail investors face heightened scrutiny.

Administration officials and lawmakers called for Congress to consider legislation that would define token categories and create statutory registration paths. Several bills are under discussion on Capitol Hill, but no comprehensive federal law has passed; regulators said their rulemaking and guidance are intended to provide nearer-term clarity while legislative work continues.

Agency officials encouraged coordination between the SEC and CFTC to address gaps in authority and reduce overlapping oversight, while each regulator emphasized its separate mandate: securities oversight at the SEC and derivatives oversight at the CFTC. Market participants are expected to review corporate structures, disclosure practices and custody arrangements to determine whether they must register, change disclosures or adjust operations to comply.