US Regulators Advance Plans to Regulate Crypto Tokens and Prediction Markets

• SEC submits new crypto guidance to the White House for regulatory review.
• Project Crypto aims to reduce uncertainty for developers, exchanges and investors.
• Regulators consider token taxonomy to classify different types of digital assets.

U.S. financial regulators are taking fresh steps toward establishing clearer rules for the cryptocurrency sector and the rapidly expanding prediction markets industry.

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have both moved regulatory proposals forward to the White House.

The development follows months of policy discussions in Washington about how existing financial laws should apply to emerging technologies such as blockchain-based tokens and prediction platforms that allow users to trade on real-world outcomes.

SEC Sends Digital Asset Guidance for Review

A new entry from the White House’s Office of Information and Regulatory Affairs (OIRA) shows that the SEC recently submitted a measure addressing how federal securities laws may apply to certain cryptocurrency assets and related transactions.

The document, received on March 3, 2026, outlines the commission’s interpretation of securities regulations in the context of digital assets. At this stage, the proposal is classified as a pre-rulemaking action, meaning regulators are still shaping how the guidance may eventually translate into formal policy.

Although the filing does not yet provide full details of the framework, it shows that the SEC is actively working to clarify how existing securities laws interact with crypto markets.

Related: Iran’s Multi-Billion Dollar Cryptocurrency Market Faces New Scrutiny Amid Conflict

Project Crypto Aims to Reduce Regulatory Uncertainty

The latest initiative is part of the SEC’s broader effort known as Project Crypto, which seeks to develop a clearer regulatory environment for digital asset markets.

Speaking at the Federal Reserve Bank of Philadelphia in late 2025, SEC Chairman Paul Atkins said one of the main goals of the initiative is to remove uncertainty that has long affected developers, exchanges, custodians and investors operating in the crypto space.

Atkins said that regulators continue to rely on the Howey test, a long-standing legal standard used to determine whether a transaction qualifies as a securities offering. However, applying that test to crypto assets often depends on the specific circumstances surrounding how the asset is issued and used.

Because the structure of digital assets can evolve over time, regulators may need to reassess whether a particular token falls under securities law as projects mature.

Prediction Markets Also Under the Microscope

Alongside crypto regulation, U.S. policymakers are increasingly focusing on prediction markets, platforms that allow participants to speculate on the outcome of future events. These markets have gained popularity in recent years, particularly on blockchain-based platforms that enable trading on political, economic and cultural events.

As such platforms resemble financial derivatives, regulators examine whether they fall under the jurisdiction of the CFTC, the SEC, or a combination of both agencies.

Related: South Korea to Enforce 20% Ownership Cap on Crypto Exchanges