For years, crypto regulation in the United States has developed under overlapping authority between the SEC and the CFTC.

First, the SEC has classified many tokens as securities using the Howey Test.

In the meantime, the CFTC has treated core assets such as Bitcoin [BTC] and Ethereum [ETH] as commodities, particularly in derivatives markets.

As these interpretations expanded, regulatory boundaries became increasingly unclear. In practice, both agencies could scrutinize the same token or trading platform.

This overlap exposed crypto firms to parallel enforcement actions, increasing uncertainty across the industry, as they faced the risk of being penalized by multiple regulatory bodies for the same actions or practices.

Enforcement…