How Are Digital Assets Regulated In The United States And Elsewhere?

Continuing instability in the crypto sector highlights the need for clear regulation for efficient development, but how best to regulate is an ongoing debate.

TAKEAWAYS

• Recent instability in the crypto sector will only intensify the debate in the United States over whether digital assets are securities subject to Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) jurisdiction.
• Key players (including the SEC) argue that not all digital assets are securities—and that more federal guidance is needed for the United States to develop a globally competitive digital asset ecosystem.
• Other jurisdictions have or are working on an approach to digital asset regulation that allows for various token classifications given the range of characteristics that digital assets can have.