Tanzeel Akhtar is a seasoned journalist who has been reporting on cryptocurrency and blockchain technology since 2015. Her work has appeared in leading publications including The Wall Street Journal,…
The past week has been a defining one for U.S. crypto regulation, marked by high-level roundtables, new probes, and bold policy proposals. While the tone from regulators suggested greater cooperation than in years past, uncertainty still looms over custody, compliance, and the road toward tokenized capital markets. Here’s a breakdown of the key developments shaping the crypto regulation environment.
‘Harmonization, Not Merger’
Securities and Exchange Commission (SEC) Chair Paul S. Atkins dismissed speculation about a merger between the SEC and the Commodity Futures Trading Commission (CFTC).
Speaking at the joint SEC-CFTC roundtable, Atkins emphasized that the agencies are pursuing “harmonization, not merger,” making clear that each will retain its independence while working together on crypto oversight.
Lawmakers Probe Deleted Gensler Texts
House Republicans launched an investigation into the deletion of nearly a year’s worth of text messages from former SEC Chair Gary Gensler.
The probe raises questions about transparency, recordkeeping, and whether Gensler received preferential treatment when his SEC-issued phone was wiped later than policy dictated. The inquiry follows an inspector general’s report citing gaps in the agency’s IT and compliance processes.
SEC Grants Temporary Clarity on Custody Rules
The SEC provided long-awaited clarity for investment advisers and funds seeking to custody digital assets. In a letter issued by the Division of Investment Management, the agency confirmed that state-chartered trust companies may temporarily serve as crypto custodians, effectively treating them as “banks” under existing federal laws.
The move gives the industry short-term certainty but leaves longer-term questions unresolved.
CFTC’s Caroline Pham Declares ‘The Turf War Is Over’
CFTC Commissioner Caroline Pham declared that the long-running rivalry between the SEC and CFTC is officially over. At the joint roundtable, Pham called the moment “historic” and stressed that cooperation is now the priority. Industry leaders from Polymarket, Kraken, and Kalshi joined regulators in outlining harmonization efforts and policy priorities.
SEC Eyes Tokenization of Stocks
In perhaps the boldest development of the week, the SEC is reportedly working on a framework to allow U.S. stocks to trade on blockchain rails. The proposal would see shares of companies like Apple, Tesla, and Nvidia represented as digital tokens, mirroring the mechanics of crypto trading.
While fintech firms and exchanges have welcomed the idea, traditional Wall Street institutions are pushing back, wary of disruptions to the current market structure.
