<div id="readability-page-1"><div> If problems arise, who will regulate them? These two seemingly simple questions constitute the root cause of the long-standing chaos in US cryptocurrency regulation. In the past few months, the US regulatory system has begun to give a series of new signals—these two questions are being re-answered. <h2>Regulatory Fog</h2>In the US financial regulatory system, crypto assets have always been situated between the jurisdictions of two major agencies: the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The SEC is responsible for the securities market, while the CFTC regulates commodities and derivatives trading.<h2>Regulatory Fog</h2> The problem is that crypto assets possess both characteristics simultaneously. Some tokens have financing properties and resemble securities. Others are more like digital goods or network resources. Therefore, for many years, the US crypto industry has faced a core uncertainty: the same asset can be interpreted by two sets of regulatory logics simultaneously. This situation is referred to by many industry insiders as: &#34;regulatory fog&#34;. Companies often find it difficult to determine which set of rules a particular product should comply with. In some cases, companies even have to deal with two regulatory agencies simultaneously. The impact of such regulatory conflicts goes beyond legal disputes. It directly affects companies' business decisions. SEC Chairman Paul Atkins acknowledged in a public speech that regulatory conflicts, duplicate registration requirements, and different rule systems have, to some extent, stifled innovation and driven some market participants to other jurisdictions. In other words, the divisions within the US regulatory system are themselves diminishing its appeal to the crypto industry. How should crypto assets be classified? For a long time, the concept of &#34;crypto assets&#34; did not exist in U.S. federal securities laws. Regulatory bodies typically rely on the Howey Test to determine whether an asset is a security, and this test is used to determine whether a transaction constitutes an investment contract. Simply put, if investors invest funds and primarily rely on the operational efforts of others to generate profits, then such an arrangement may be considered a security. For decades, this standard has been a core foundation of U.S. securities regulation. But when this logic is applied to crypto assets, the issue becomes more complex. Some tokens clearly possess investment attributes. Some are more like network usage credentials. And some are simply digital collectibles. In the same market, assets can be entirely different in nature. To address this complexity, the SEC proposed a new regulatory approach in November 2025. SEC Chairman Paul Atkins stated that the SEC is building a four-category token classification framework based on the Howe Test. This framework categorizes digital assets into four types: Digital Goods or Network Tokens. This classification framework also signifies that... For the first time, US regulators have systematically acknowledged that not all crypto assets are securities. But even as asset types begin to become clearer, another question remains. If certain tokens are classified as digital commodities, who ultimately has the regulatory power? In the US financial system, the primary regulatory body for commodity markets is the CFTC. This means that once certain digital assets are considered commodities, regulatory power no longer entirely rests with the SEC. This is precisely the long-standing institutional conflict between the SEC and CFTC over the past few years. Recently, this long-standing regulatory divergence has begun to show signs of easing. The SEC and CFTC announced the signing of a Memorandum of Understanding (MOU), committing to strengthen coordination in several areas, including: Crypto Asset Regulation. New Digital Asset Products</div></div>

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The US crypto industry faces a decade-long regulatory struggle between the SEC and CFTC, with unresolved questions about the classification and regulation of crypto assets. The SEC has proposed a new four-category framework for token classification, acknowledging that not all crypto assets are securities. Recent collaboration between the SEC and CFTC aims to enhance coordination in regulating crypto assets, investor protection, and establishing a federal-level policy framework. This shift may signal a turning point in resolving the regulatory chaos surrounding cryptocurrencies in the US.

- The U.S. cryptocurrency regulatory landscape faces significant uncertainty due to overlapping jurisdictions between the SEC and CFTC, leading to what industry insiders call "regulatory fog."  
- SEC Chairman Paul Atkins has noted that this conflict hampers innovation and pushes companies to seek clarity in other jurisdictions.  
- Recent efforts include a proposed framework to classify digital assets into four categories, signifying a recognition that not all crypto assets are securities, accompanied by a new MOU aimed at enhancing coordination between the SEC and CFTC.

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The decade-long power struggle between the SEC and CFTC is reaching a turning point.