SEC vs CFTC: which US regulator is in charge of crypto?
For years the answer to "who regulates crypto in America?" was "it depends". In 2026 the two main market regulators published a shared map, but Congress has not yet written the split into law.
Education only, not investment, tax or legal advice. Crypto-assets are high-risk — risk disclosure.
The short answer
The SEC oversees securities; the CFTC oversees commodity derivatives markets. A crypto-asset sold as an investment in someone else's efforts can be a security, while many other tokens may be commodities. A joint interpretation in March 2026 set out categories, but as of October 2026 no market-structure law had passed.
Key takeaways
- The SEC, created in 1934, protects investors in securities; the CFTC, created in 1974, oversees US derivatives markets.
- Which agency matters depends on what a token is: a security, a commodity or something else.
- In March 2026 the SEC, joined by the CFTC, set out five categories of crypto-asset, four of which it does not treat as securities.
- The House passed the CLARITY Act in July 2025, but a Senate motion to advance it failed on September 15, 2026.
- Agency interpretations can change faster than laws, so check the date of any guidance you rely on.
What do the SEC and the CFTC each regulate?
The Securities and Exchange Commission (SEC) was set up in 1934, during the Great Depression. Its mission has three parts: protect investors, keep markets fair, orderly and efficient, and help companies raise capital1. It oversees stock exchanges, broker-dealers and investment advisers, and it requires companies that sell securities to the public to disclose key facts.
The Commodity Futures Trading Commission (CFTC) was created in 1974 by the Commodity Futures Trading Commission Act. Its mission is to promote the integrity, resilience and vibrancy of US derivatives markets, a role that began with futures on farm products2. Derivatives are contracts whose value comes from something else, such as wheat, oil or bitcoin.
Why has crypto fallen between the two agencies?
US law did not anticipate tokens that can behave like a share on Monday and a payment tool on Friday. If a token is offered as an investment that depends on a team's efforts, it can be an investment contract and therefore a security, under the test the Supreme Court set in SEC v. W.J. Howey Co.3. If it is not a security, it may be a commodity, which brings derivatives on it under the CFTC5.
The result was years of uncertainty for projects and investors, with the label often settled case by case. Announcing the March 2026 interpretation, SEC Chairman Paul Atkins6 described it as ending more than a decade of uncertainty11.
Figure · Which regulator? A simplified path
- 01A crypto-assettoken, coin or stablecoin
- 02Sold as investment?relying on others' efforts
- 03Yes: securitySEC rules apply
- 04No: non-securitymay be a commodity
- 05Derivatives on itCFTC oversight
How did the SEC and CFTC divide crypto in 2026?
On March 17, 2026 the SEC issued an interpretation, Release No. 33-11412, explaining how federal securities laws apply to crypto-assets, and the CFTC joined it115. It took effect on March 23, 20263. It sorts crypto-assets into five groups4:
The five categories in the March 2026 interpretation Source: [4]
| Category | What it means | Security? |
|---|---|---|
| Digital commodities | Value comes from a functioning crypto system and supply and demand | No |
| Digital collectibles | Made to be collected or used, such as art, music or memes | No |
| Digital tools | A practical function: membership, ticket, credential, badge | No |
| Stablecoins | Payment stablecoins as defined in the GENIUS Act | No |
| Digital securities | A recognised security, such as a share, issued as a token | Yes |
Two points matter. First, a non-security token can still be sold as part of an investment contract when an issuer promises to work to make it valuable, and the interpretation explains that such a contract ends once the issuer has kept, or failed to keep, those promises4. Second, the CFTC said certain non-security crypto-assets could meet the definition of a commodity under the Commodity Exchange Act5.
The agencies also signed an updated memorandum of understanding on March 11, 2026, covering harmonised definitions, information sharing and crypto oversight6. The interpretation also replaces the SEC staff's 2019 framework for analysing digital assets3.
What does the CFTC actually oversee in crypto?
The CFTC's long-standing crypto role is derivatives: futures and other contracts on assets such as bitcoin, traded on exchanges it oversees12. In December 2025 it went further, announcing that listed spot crypto products would trade for the first time on designated contract markets, the futures exchanges it registers7.
Figure · Who looks at what
SEC
- Digital securities
- Investment contracts around tokens
- Securities exchanges and brokers
CFTC
- Non-security tokens that are commodities
- Crypto futures and other derivatives
- Listed spot crypto on its exchanges
Our explainer on spot versus derivatives shows why the difference matters for traders.
Has Congress settled who regulates crypto?
Not yet, and an agency interpretation is not a statute. The House of Representatives passed H.R. 3633, the Digital Asset Market Clarity Act (CLARITY Act), on July 17, 2025 by 294 votes to 1349. The bill would set up a system for the SEC and CFTC to regulate the offer and sale of digital commodities10.
In the Senate, a motion to end debate and begin considering the bill failed on September 15, 2026, by 49 votes to 50, short of the 60 votes required10. As of October 2026, the bill had therefore not become law. Meanwhile, on August 18, 2026 the SEC proposed a new rule, Regulation Crypto Assets, with two registration exemptions and a conditional safe harbour from investment-contract status8; it is a proposal, not a final rule.
Figure · Key steps, 2025 to 2026
- Jul 17, 2025House vote
- Dec 4, 2025CFTC: listed spot crypto on its exchanges
- Mar 11, 2026SEC-CFTC sign updated MOU
- Mar 17, 2026Joint crypto-asset interpretation
- Aug 18, 2026SEC proposes Regulation Crypto Assets
- Sep 15, 2026Cloture fails
What does the SEC-CFTC split mean for ordinary investors?
The label on a token decides which protections apply. Securities rules focus on disclosure by issuers and conduct by brokers. Commodity rules focus on the integrity of the markets where contracts trade. A token that is neither, or a platform outside the US, may leave you with far less protection than either.
Common beginner mistakes
Assuming "commodity" means "approved"
Saying a token is not a security does not mean any agency vouches for it. It only changes which rulebook applies.
Relying on old guidance
The SEC's 2019 staff framework has been replaced by the 2026 interpretation3. Always check the date.
Treating a bill as law
The CLARITY Act passed the House but, as of October 2026, had not passed the Senate10.
Forgetting the platform
Even a clearly classified token can be held on a platform that is not registered with either agency. Check the firm, not just the coin.
Risk warning
Classification is not protection
Crypto-assets are volatile, and the CFTC warns that the digital asset marketplace is largely unregulated and that fraud is a significant risk12. Use our guide on checking a regulated firm and read the risk disclosure before you put money in.
Frequently asked questions
Is bitcoin regulated by the SEC or the CFTC?
Who regulates stablecoins in the US?
Payment stablecoins have their own federal law, the GENIUS Act. The SEC lists them among assets it does not treat as securities4.
Can a token stop being a security?
The 2026 interpretation says an investment contract around a non-security token ends when the issuer has fulfilled or failed its promises of essential managerial efforts4.
Does the March 2026 interpretation have the force of law?
It is the agencies' formal interpretation of existing law, not a statute passed by Congress. Interpretations can be revised: this one itself replaced earlier SEC staff guidance3.
The bottom line
The SEC handles securities and the CFTC handles commodity derivatives, and in 2026 the two agencies agreed a shared map of which crypto-assets fall where. Under that map the SEC treats four of the five token categories as non-securities, but as of October 2026 Congress had not turned the map into statute. Check dates, check the platform, and remember that classification is not a safety rating.
Sources
- Mission — U.S. Securities and Exchange Commission Primary source
- About the Commission — U.S. Commodity Futures Trading Commission Primary source
- Application of the Federal Securities Laws to Certain Types of Crypto Assets (Release Nos. 33-11412; 34-105020) — U.S. Securities and Exchange Commission, 2026 Primary source
- Fact sheet: Application of the Federal Securities Laws to Certain Types of Crypto Assets — U.S. Securities and Exchange Commission, 2026 Primary source
- CFTC Joins SEC to Clarify the Application of Federal Securities Laws to Crypto Assets (Release 9198-26) — U.S. Commodity Futures Trading Commission, 2026 Primary source
- SEC, CFTC Announce Historic Memorandum of Understanding Between Agencies (2026-26) — U.S. Securities and Exchange Commission, 2026 Primary source
- Acting Chairman Pham Announces First-Ever Listed Spot Crypto Trading on U.S. Regulated Exchanges (Release 9145-25) — U.S. Commodity Futures Trading Commission, 2025 Primary source
- SEC Proposes New Regulation for Crypto Assets (2026-76) — U.S. Securities and Exchange Commission, 2026 Primary source
- Roll Call 199: H.R. 3633, On Passage — Office of the Clerk, U.S. House of Representatives, 2025 Primary source
- Roll Call Vote 119th Congress, 2nd Session, Vote Number 234 — United States Senate, 2026 Primary source
- SEC Clarifies the Application of Federal Securities Laws to Crypto Assets (2026-30) — U.S. Securities and Exchange Commission, 2026 Primary source
- Digital Assets (customer education and bitcoin futures materials) — U.S. Commodity Futures Trading Commission Primary source
How we checked this page: every figure above links to the numbered source it came from. Spotted an error? Tell the desk — see our editorial policy.
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