This initiative signals a potential shift toward a more coordinated regulatory structure for the crypto sector in the United States, where multiple agencies have historically shared overlapping responsibilities.

Strengthening Cooperation Between Regulators

Atkins shared the update while speaking at the FIA Global Derivatives Markets Conference in Florida. According to his remarks, the SEC intends to strengthen collaboration with the CFTC in order to improve regulatory oversight of the digital asset industry.

The proposed agreement aims to align the regulatory approach of both institutions and encourage closer coordination in policy and enforcement decisions related to cryptocurrencies.

As part of this effort, Atkins also stated that he has instructed SEC staff to begin holding joint meetings with the CFTC when reviewing applications related to new financial products involving digital assets.

Toward Joint Decision-Making

If implemented, the planned MOU could lead to coordinated decision-making across several key regulatory areas. Among the topics expected to be addressed are:

• The evaluation of financial product applications

• Interpretation of regulatory rules

• Enforcement and compliance decisions

• Investigations involving regulated companies

Such collaboration could help reduce long-standing uncertainty regarding which regulator has authority over specific types of crypto assets.

SEC and CFTC: From Regulatory Competition to Cooperation

In previous years, the SEC and CFTC were often viewed as competing regulators when it came to oversight of the cryptocurrency market. Each agency has asserted jurisdiction over different categories of digital assets and financial instruments tied to them.

However, Atkins indicated that the regulatory approach is evolving. Rather than operating in parallel or competing for oversight, the two agencies are now seeking to formalize their cooperation through a structured framework.

The SEC chairman described the SEC and the CFTC as “sister agencies” that together will oversee a large portion of cryptocurrency-related activity in the United States.

Aligned With the U.S. Crypto Strategy

Atkins’ comments also align with broader policy objectives within the United States regarding digital assets. U.S. President Donald Trump has previously expressed the ambition of turning the country into the “crypto capital of the world.”

Closer coordination between major regulatory bodies is widely seen as an important step toward achieving that goal. A unified regulatory approach could provide greater clarity for investors while also creating a more predictable operating environment for companies within the crypto industry.

As the digital asset market continues to expand, stronger cooperation between the SEC and CFTC may play a key role in shaping the future regulatory landscape for cryptocurrencies in the United States.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post SEC and CFTC Move Toward Joint Framework for Crypto appeared first on Coin Engineer.

Why Was the SEC Lawsuit Filed?

In 2023, the SEC accused Justin Sun and three companies linked to him of selling TRX and BTT tokens as unregistered securities. The regulator also alleged that Sun manipulated the market through transactions known as “wash trading” in order to artificially inflate the price of TRX. Additionally, the SEC claimed that several celebrities were paid to promote the tokens. As part of the case, eight celebrities were included in the investigation. Figures such as Lindsay Lohan and Jake Paul were accused of promoting TRX and BTT tokens on social media without clearly disclosing that the posts were paid advertisements. During the process, six celebrities agreed to pay approximately $400,000 in fines and interest without admitting the allegations, thereby closing their part of the case.

According to court documents, Rainberry, the company responsible for developing the BitTorrent protocol, agreed to pay a $10 million civil penalty as part of the settlement with the SEC. The company also committed not to engage in deceptive practices in securities markets in the future. The defendants did not admit the SEC’s allegations but agreed to the settlement as part of the resolution process. The agreement still requires court approval to take effect.

Justin Sun and the BitTorrent Process

Justin Sun acquired BitTorrent in June 2018 and about a year later launched the BTT token for the BitTorrent ecosystem. This move was considered a significant step for expanding the Tron network and developing a decentralized content-sharing economy. The BTT token was designed to create an incentive mechanism for BitTorrent users during file-sharing processes. During the lawsuit, Sun’s lawyers also raised objections regarding whether the SEC had jurisdiction over an international crypto entrepreneur. The defense emphasized that Tron operates as a global ecosystem and questioned the SEC’s legal authority in the case. Despite these arguments, the parties agreed to accept the jurisdiction of a U.S. court so that settlement negotiations could proceed. This step is seen as an important stage in resolving the case through settlement.

Steps Back in Crypto Lawsuits

Following Donald Trump’s return to the presidency, the SEC has reportedly taken a step back in several cases involving the crypto sector. The regulator previously withdrew some lawsuits against major crypto platforms such as Binance, Coinbase, and Uniswap. Since the beginning of 2025, the SEC is said to have ended more than a dozen crypto-related cases. This development has led to speculation that regulatory pressure on the crypto industry could ease. The settlement between the SEC and Tron is seen as an important turning point in the crypto market. While price volatility has been observed in Tron ecosystem tokens such as TRX and BTT, analysts believe the development may signal a softer regulatory approach toward cryptocurrencies in the United States. If the settlement is approved by the court, much of the legal uncertainty surrounding the Tron ecosystem could be removed.

Also, you can freely share your thoughts and comments about the topic in the comment section. Additionally, please follow us on our Telegram, YouTube and Twitter channels for the latest news and updates.

The post Justin Sun and SEC Reach Agreement: Is the Lawsuit Coming to an End? appeared first on Coin Engineer.

SEC Prepared New Guidance for Crypto Assets

According to the Bloomberg report, the SEC has prepared new guidance explaining how federal securities laws may apply to certain crypto assets and submitted the document to the White House for review. The guidance aims to more clearly define which crypto assets fall under the category of securities. Its main objective is to clarify under what circumstances crypto assets may be considered securities. In doing so, regulators hope to both strengthen investor protection and reduce regulatory uncertainty in the market. The document is also intended to create a clearer regulatory framework for crypto companies operating in the United States. Analysts believe this step could bring significant clarity to the long-running debate about crypto regulations in the country. Such guidance could also be critical in determining under which legal framework crypto projects and exchanges will be allowed to operate.

In addition to the crypto market, prediction markets have also drawn the attention of U.S. regulators. As part of this effort, the CFTC has submitted new regulatory measures for prediction markets to the White House for review. In recent years, blockchain-based prediction platforms have grown rapidly, increasing the need for clearer regulations in this area. The plan prepared by the CFTC is intended to ensure that such platforms operate under more clearly defined rules.

Token Classification System on the Agenda

Another notable detail in the report concerns the clarification of regulatory authority between the SEC and CFTC. For a long time, there has been ongoing debate about which institution should regulate which types of crypto assets.

The new guidance may introduce a token classification system, which could help clarify:

• Which crypto assets will be classified as securities and therefore fall under SEC oversight
• Which assets will be categorized as commodities, placing them under the jurisdiction of the CFTC
• How the regulatory boundaries between the two agencies will be defined

According to experts, such a classification system could create a more predictable and transparent regulatory environment for crypto companies operating in the United States. It may also help investors better understand the legal framework under which different crypto assets are evaluated.

Evaluation

The new regulatory plan submitted by the SEC and CFTC to the White House is considered an important development for the future of the cryptocurrency market in the United States. Clarifying critical issues—such as how crypto assets will be classified and which institution will oversee them—could help create a more transparent and structured market. Analysts say these regulations could not only strengthen investor protection but also provide a clearer legal framework for crypto companies. Such a regulatory structure could increase institutional investor confidence in the market and directly influence the long-term development of the crypto ecosystem in the United States.

Also, you can freely share your thoughts and comments about the topic in the comment section. Additionally, please follow us on our Telegram, YouTube and Twitter channels for the latest news and updates.

The post SEC and CFTC Move to Establish Crypto Regulations! appeared first on Coin Engineer.

According to Atkins, regulatory structures failed to keep pace with technological innovation, creating uncertainty for market participants. In his view, the gap between innovation and oversight weakened the country’s ability to lead in a rapidly developing sector.

The Gensler Era: Enforcement-First Oversight

Under former SEC Chair Gary Gensler, the agency adopted a cautious and enforcement-driven stance toward crypto. A substantial number of digital assets were treated as securities, and numerous enforcement actions were brought against firms—primarily over registration-related violations.

While this approach aimed to protect investors and enforce compliance, critics within the industry argued that regulatory clarity was lacking. Rather than establishing forward-looking frameworks, the SEC relied heavily on litigation, which many believed slowed innovation and discouraged institutional development in the sector.

A More Constructive Regulatory Direction

With the Trump administration in office, the SEC’s tone toward crypto has shifted. The agency has formed a dedicated crypto task force and withdrawn several high-profile enforcement cases initiated during the previous period. In addition, it launched “Project Crypto,” an initiative designed to modernize regulatory standards and adapt them to emerging financial technologies.

Atkins has acknowledged the volatility inherent in individual cryptocurrencies but has expressed strong support for the broader potential of distributed ledger technology (DLT). He highlighted its possible applications in payment infrastructure, clearing, and settlement systems—areas where blockchain-based efficiencies could significantly reshape financial operations.

Tokenization and the 24/7 Market Vision

A notable milestone came with the SEC granting exemptive relief to WisdomTree for its Treasury Money Market Digital Fund. The approval allows 24/7 trading and instant settlement—an unprecedented development in the U.S. market for tokenized money market products.

Atkins also indicated that tokenized bank deposits may be the next step. These developments suggest a broader transition toward on-chain financial infrastructure, signaling an effort to modernize U.S. markets and regain leadership in digital finance.

This content does not constitute investment advice.

Also, in the comment section, you can freely share your comments and opinions about the topic. Additionally, don’t forget to follow us on Telegram, YouTube and Twitter for the latest news and updates.

The post SEC Signals a Strategic Reset in Crypto Policy appeared first on Coin Engineer.

Hougan argues that the transition underway is not incremental. In his view, major financial institutions are not merely experimenting with blockchain technology at the margins; they are laying the groundwork for capital markets that could eventually operate natively on-chain. The question, he suggests, is not whether Wall Street is engaging with crypto — but when that engagement will be fully reflected in asset prices.

Wall Street is Working on Crypto!

One of the central issues, Hougan contends, is anchoring bias. Many investors still associate crypto with its early identity: a niche technology embraced by technologists and fringe communities. That outdated mental model may be obscuring the structural evolution currently taking place.

Today’s landscape looks markedly different. Regulated financial entities are building compliant infrastructure, integrating blockchain-based settlement systems, and developing tokenized financial products. The transformation is not just conceptual — it is measurable.

The total value of tokenized assets on public blockchains, including U.S. Treasurys and commodities, has surged more than fourfold over 2025, approaching $20 billion. When compared to the hundreds of trillions of dollars in global ETFs, equities, and bond markets, the potential addressable market for tokenization remains vast.

Regulatory Momentum and Institutional Participation

Regulatory posture in the United States has also become more constructive. The Securities and Exchange Commission’s “Project Crypto,” launched in July to facilitate the migration of financial markets on-chain, signals formal institutional support for this direction.

Meanwhile, major asset managers such as BlackRock and Apollo have introduced tokenized funds valued in the billions. Large banking institutions — including JPMorgan, Bank of America, Citigroup, and Wells Fargo — are reportedly engaged in discussions around stablecoin initiatives.

A Mispriced Structural Shift?

Hougan suggests that both traditional and crypto-native investors may be underappreciating the magnitude of the change. After years of hearing about institutional adoption, markets may have grown desensitized to the narrative.

However, accelerating tokenization volumes, regulatory alignment, and concrete participation from major financial players indicate that on-chain finance is evolving into a structural development rather than a speculative theme. If that assessment proves accurate, the repricing of this transformation may still be ahead.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Bitwise CIO: Wall Street Is Talking Crypto appeared first on Coin Engineer.

What the 100% Haircut Previously Meant

Under the prior framework, broker-dealers were required to apply a 100% capital charge to stablecoins recorded on their balance sheets. In practical terms, this meant that if a firm held $1 million worth of stablecoins, it had to set aside an equivalent $1 million in regulatory capital, effectively treating the asset as having no usable capital value.

This approach made holding stablecoins economically inefficient for regulated intermediaries. From a capital management perspective, stablecoins were penalized in a way that discouraged their adoption in institutional workflows. With the haircut now reduced to 2%, stablecoins are positioned more similarly to money market instruments in regulatory treatment, significantly easing the capital burden.

SEC Paves the Way for Corporate Integration

Jon Paul Richardson, CEO of Exodus, described the SEC decision as one of the most consequential developments of the year, even if it has not generated widespread headlines. According to Richardson, sharply lowering the capital requirement removes a major structural barrier that has limited stablecoin usage within institutional finance.

Under the updated rule:

• Broker-dealers can utilize stablecoins without imposing excessive strain on their balance sheets.

• Settlement of tokenized assets such as U.S. Treasury instruments, equities, and bonds becomes more economically viable.

• Stablecoin-based clearing and settlement systems can scale more efficiently at the institutional level.

The regulatory adjustment may also help operationalize previously passed legislation such as the GENIUS Act by making stablecoin infrastructure more practical in real-world financial environments.

Competitive Pressure May Intensify

With the effective capital penalty largely eliminated, stablecoin adoption could become a competitive differentiator among major financial intermediaries. Institutions that move quickly to build stablecoin infrastructure may gain operational advantages, while slower-moving firms risk falling behind.

Richardson argues that while market participants often focus on ETF approvals or political developments, the more profound transformation is occurring at the intersection of traditional finance and blockchain-based systems. Despite broader market volatility, regulatory refinements at the infrastructure level may lay a durable foundation for long-term growth.

This content does not constitute investment advice.

Also, you can freely share your thoughts and comments about the topic in the comment section. Additionally, please follow us on our Telegram, YouTube and Twitter channels for the latest news and updates.

The post SEC Signs Critical Regulation for Cryptocurrencies! appeared first on Coin Engineer.

Representative Stephen Lynch of Massachusetts argued that enforcement activity has declined significantly since Trump took office and appointed Atkins to lead the Securities and Exchange Commission. According to Lynch, enforcement actions targeting the crypto sector have fallen by roughly 60%. He cited the SEC’s decision in May 2025 to move to dismiss its case against Binance as a prominent example of this trend.

Concerns Over Political and Foreign Ties

The hearing extended beyond enforcement statistics. Lawmakers also raised concerns about the Trump family’s connections to cryptocurrency ventures. Particular attention was given to World Liberty Financial (WLFI), a decentralized finance platform reportedly linked to the Trump family.

Recent reports indicate that Aryam Investment 1, an Abu Dhabi-based investment vehicle backed by Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates’ national security adviser, acquired a 49% stake in the startup behind WLFI. Lynch suggested that such foreign involvement, combined with crypto projects associated with the Trump family, could present risks to both national security and investor confidence.

He also pointed to recent market volatility, noting that the crypto market has declined by approximately 25% over the past month. In his view, ongoing scams and weakened enforcement have damaged trust, harming consumers and the broader reputation of the industry.

SEC Pushes Back

Chair Atkins rejected the characterization that the agency has retreated from oversight. He maintained that the SEC continues to pursue a “robust” enforcement agenda and remains active in bringing cases where warranted.

However, Representative Maxine Waters of California questioned the motivations behind the dismissal of certain high-profile lawsuits. She argued that several cases were dropped despite prior legal momentum in court. Waters further alleged that crypto executives who benefited from pardons or withdrawn lawsuits had contributed millions of dollars to Trump and his family. She reiterated calls for scrutiny of the Trump family’s crypto ventures, suggesting they could serve as indirect channels for foreign influence over executive branch policy.

Political Stakes in an Election Year

The debate unfolds against the backdrop of a U.S. midterm election cycle. If Democrats regain control of at least one chamber of Congress, the trajectory of crypto market structure legislation could shift or slow considerably.

With regulatory policy, political power, and digital assets now closely intertwined, the future of U.S. crypto oversight appears increasingly shaped by electoral outcomes as much as by financial law.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Crypto Regulation Back in the Spotlight in Washington appeared first on Coin Engineer.

SEC and CFTC Signal Coordinated Action

In a joint interview with The Wall Street Journal, U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins and Commodity Futures Trading Commission (CFTC) Chair Michael Selig stated that they are ready for closer and more coordinated cooperation on cryptocurrency regulations. It was noted that the two regulatory bodies are considering signing a memorandum of understanding (MoU), particularly to clarify long-debated supervisory responsibilities and jurisdictional boundaries within the crypto market. This move aims to create a more predictable and transparent regulatory framework for market participants.

Paul Atkins emphasized that a comprehensive and clear legislative framework would be the healthiest long-term solution, while noting that regulatory gaps should not lead to delays in the meantime. “We expect legislation to pass later this year; however, until then, we can still move forward within the scope of our existing authorities,” Atkins said. Regulators stressed that any interim measures would be aligned with future legislation and that even temporary rules could provide much-needed clarity and stability for the industry.

Delay of the Clarity Act Increased Uncertainty

The suspension of the Clarity Act in the Senate has reignited regulatory uncertainty across both the cryptocurrency and banking sectors. According to industry sources, disagreements involving one of the largest U.S. crypto exchanges, Coinbase, particularly over stablecoin rewards and their alignment with banking regulations, played a significant role in delaying the bill. Diverging views on how stablecoin-based yields should fit within existing banking laws weakened political support for the proposal. Following objections raised by Coinbase CEO Brian Armstrong, the Clarity Act was shelved in the short term, heightening concerns that clear rules would be further delayed.

Despite this, the new approach aims to establish a clearer division of responsibilities between regulators. Under the proposed framework, the SEC would focus on tokenized securities and digital assets that qualify as investment contracts, while the CFTC would oversee digital assets and crypto assets that resemble commodities. CFTC Chair Michael Selig stated:

“We need to make clear classifications and remain within our respective enforcement boundaries,” highlighting the importance of well-defined jurisdictional limits.

SEC Chair Paul Atkins added:

“Our goal is to ensure that no asset is left in a regulatory gray area,” emphasizing that eliminating ambiguity is one of their top priorities.

A Clear Break from the Biden Era

This approach represents a significant departure from the stricter, enforcement-heavy regulatory stance adopted during the tenure of former SEC Chair Gary Gensler, which often created uncertainty. Following the collapse of FTX in 2022, increased regulatory pressure pushed many crypto companies to seek more flexible regulatory environments outside the U.S.—a reality acknowledged by the new SEC and CFTC leadership. They openly recognize that this trend weakened the United States’ competitiveness in global crypto innovation.

The recent messages from the SEC and CFTC chairs suggest that a clearer, more coordinated, and innovation-friendly regulatory framework may be taking shape in the U.S. Reduced regulatory uncertainty could not only encourage greater participation from institutional investors but also position the United States once again as a global hub for cryptocurrency and blockchain innovation.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post SEC and CFTC Chairs Speak : The Mood Is Changing in Crypto! appeared first on Coin Engineer.

Lummis is one of Congress’s most prominent advocates for Bitcoin and blockchain technology. Her long-standing push for clear, functional legal frameworks has made her a trusted voice within the crypto ecosystem. As a result, her remarks have drawn considerable attention from market participants and policymakers alike.

What Does the CLARITY Act Aim to Do?

The CLARITY Act is designed to establish a coherent regulatory structure for digital assets in the United States. At its core, the bill seeks to eliminate jurisdictional overlap and clearly define which regulators oversee different categories of crypto assets.

Under the proposed framework:

• The SEC would supervise digital assets classified as securities

• The CFTC would oversee commodities-based crypto assets such as Bitcoin

By clarifying these roles, the legislation aims to provide companies with predictable compliance standards while offering investors greater legal certainty. The bill passed the House of Representatives in July 2025 with a 294–134 vote, reflecting notable bipartisan support.

Why Regulatory Clarity Matters Now

Uncertainty has proven costly for the U.S. crypto sector. In recent years, unclear rules and enforcement-driven regulation have pushed startups, capital, and talent offshore. While Europe advanced with MiCA and parts of Asia became innovation hubs, many U.S.-based firms faced lawsuits rather than guidance.

The CLARITY Act is intended to reverse this trend. With clearer rules in place:

• Crypto startups can operate with greater confidence

• Institutional investors can deploy capital more decisively

• Legal and compliance risks are significantly reduced

In short, clarity creates conditions for sustainable growth rather than defensive positioning.

Presidential Backing Changes the Equation

Executive support is often the missing piece in major regulatory reforms. A president willing to sign the CLARITY Act sends a strong signal to both regulators and markets that digital assets are no longer viewed solely as a risk, but as a legitimate part of the financial system.

For Bitcoin, clearer CFTC oversight could accelerate institutional adoption across ETFs, custody services, and payment infrastructure. For Ethereum and other networks, a framework based on decentralization metrics could replace ad-hoc interpretations with consistent standards.

A Turning Point for U.S. Crypto Markets?

Senator Lummis’s call for swift Senate action underscores the urgency of the moment. With political momentum building and public sentiment shifting toward innovation and competitiveness, the CLARITY Act appears closer to becoming law than ever before.

If enacted, the legislation could mark the beginning of a new chapter—one in which the United States reclaims a leadership role in the global crypto economy through transparency, certainty, and regulatory balance.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube and Twitter channels for the latest news and updates.

The post President Delivers Critical Message on Clarity Act! appeared first on Coin Engineer.

Democrats Push to Reopen Talks for Crypto

According to individuals familiar with the discussions, a group of Senate Democrats remains committed to advancing crypto legislation through the Agriculture Committee. These lawmakers are reportedly willing to reengage with the team of Committee Chair Senator John Boozman, a Republican, in an effort to craft a version of the bill that could attract support from both parties.

Rather than allowing the proposal to stall indefinitely, Democrats are signaling openness to compromise—provided the final text reflects balance, transparency, and shared authorship. As Thursday’s vote approaches, behind-the-scenes outreach is expected to continue.

Regulatory Authority at the Center of the Dispute

The bill aims to define a federal regulatory structure for digital assets, but disagreements have intensified over the past month. A key sticking point is the division of oversight between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), along with new disclosure and transparency requirements for market participants.

For the legislation to advance to the full Senate, both the Agriculture Committee and the Senate Banking Committee must approve their respective versions. That dual-track requirement has complicated progress.

Banking Committee Stalls the Process for Crypto

Both committees had originally planned to vote on January 15, but neither did so. While the Agriculture Committee delayed its session, the Banking Committee effectively paused its work after withdrawing support amid concerns linked to Coinbase’s activities, including tokenized equities and stablecoin-related incentives. No new voting date has been announced by the Banking Committee.

November Consensus Falls Apart

Committee spokesperson Sara Lasure has stated that the version set for a vote reflects months of bipartisan collaboration. Democrats, however, argue that a draft jointly developed in November was later altered without their input in early January. That move, they say, undermined trust and derailed cooperative momentum.

A draft released last week by the Republican-led committee failed to gain Democratic backing. Although some adjustments were discussed—partly aimed at addressing concerns related to former President Trump and his family’s crypto holdings—key Democratic negotiators declined to submit amendments.

White House Urges Swift Action

TD Cowen analyst Jaret Seiberg notes that Democratic support currently appears unlikely, though negotiations could still unfold during the voting process itself. The White House continues to advocate for rapid passage, emphasizing the importance of market structure clarity. Patrick Witt, Director of the President’s Digital Assets Advisory Council, has reiterated that passage is a matter of timing, not possibility.

Benchmark analyst Mark Palmer adds that while failure to pass the bill would not permanently damage the sector, it would limit the growth potential of the U.S. crypto market.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post A Pivotal Week for U.S. Crypto Bill appeared first on Coin Engineer.