Recently, the movement of U.S. financial regulatory authorities has been accelerating. There are reports that the SEC and CFTC are rapidly advancing crypto asset oversight by utilizing interpretive rules.

Looking at the GAO report released recently, we can see how both agencies are acting. They are starting to classify crypto assets based on their characteristics and functions while using the existing securities law framework. In other words, they are avoiding the traditional, time-consuming rulemaking process and implementing policies through interpretive means. This approach offers the advantage of providing immediate clarity to the market.

What’s interesting is that this approach does not involve conducting formal cost-benefit analyses or soliciting public comments. They are proceeding with speed as a priority. By significantly reducing procedural friction, they aim to support broader adoption.

The impact of these regulatory changes on market structure is expected to be quite significant. Barriers to entry for issuers are likely to decrease, and scalability could improve. Crypto assets will increasingly be incorporated into the securities law framework. Market participants should keep a close eye on these developments.