Weekly Crypto Regulation Roundup: SEC Softens Stance, CFTC Expands Authority, Banks Deepen Crypto Involvement Amid Political Shifts
The U.S. Securities and Exchange Commission (SEC) has ended its probe into Ondo Finance without filing charges, signaling a softer enforcement posture and potentially increasing legitimacy for tokenized securities and real-world assets.
The Commodity Futures Trading Commission (CFTC) has launched a collateral pilot program allowing Bitcoin, Ether, and USDC to be used as collateral in derivatives markets. This initiative aims to enhance oversight of tokenized collateral under market stress. Additionally, the CFTC has withdrawn its 2020 actual-delivery Bitcoin guidance and granted no-action relief to platforms including Polymarket US, LedgerX, PredictIt, and Gemini Titan, easing regulatory burdens for these entities.
In parallel, the Office of the Comptroller of the Currency (OCC) now permits national banks to conduct riskless principal crypto transactions—buying crypto from one customer and selling to another without holding inventory. This move is designed to bolster banks' roles as regulated intermediaries in the crypto space, alongside existing custody and balance-sheet holdings guidance.
However, nine major banks were found to have imposed inappropriate restrictions on crypto companies. This underscores calls for consistent and market-friendly regulatory standards as banks increase their involvement with cryptocurrencies.
On the policy front, the battle over central bank digital currency (CBDC) development has intensified. Representative Keith Self introduced an amendment in the annual defense bill to prohibit the development of a U.S. CBDC, highlighting partisan divisions and shifting momentum on this issue.
Notably, the Trump administration's 2025 National Security Strategy omits digital assets, although related activities continue through entities like the President’s Working Group on Digital Assets and legislative efforts such as the GENIUS Act. This suggests that while cryptocurrencies are influencing economic policy, they are not yet integrated into national security planning.
Meanwhile, Michael Selig, former Trump nominee to chair the CFTC, has advanced to a Senate vote. If confirmed, he would lead a growing CFTC agency with expanding crypto regulatory authority amid ongoing staffing concerns.
