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SEC and CFTC Are Writing Crypto Rules Without Congress — Here's Why They Won't Stick

(51 days ago) · 1 source · Summarized by CryptoBipto

The SEC and CFTC are moving forward with crafting cryptocurrency regulations on their own, bypassing Congress in the process. However, without legislative backing, these agency-created rules lack permanence and could be overturned or revised by future administrations or court challenges.

WHY IT MATTERS

Think of it like this: Congress is like a city council that passes permanent laws, while the SEC and CFTC are more like department managers who can set workplace policies. Those policies can guide behavior day-to-day, but a new manager can come in and change them. That's essentially what's happening here — the SEC and CFTC are setting crypto 'policies' because Congress hasn't passed crypto 'laws' yet. For everyday crypto users and investors, this means the rules you follow today might not be the rules tomorrow, creating uncertainty about what's allowed and what isn't. It also means the U.S. still doesn't have a clear, permanent rulebook for crypto — something that many in the industry have been asking for.

In a significant regulatory development, the SEC and CFTC are attempting to establish crypto rules through their own rulemaking authority rather than waiting for Congress to pass comprehensive legislation.

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SEC RegulationCFTCCrypto LegislationRegulatory UncertaintyU.S. Policy