Regulation by Rulemaking: SEC and CFTC Continue Piecing Together a Crypto Asset Framework (FCTM) - Lowenstein Sandler LLP

The SEC and CFTC are continuing to build out a crypto asset framework through rulemaking rather than comprehensive legislation, according to analysis from Lowenstein Sandler LLP. The piece, titled "Regulation by Rulemaking," frames the current period as one in which the two agencies are assembling a regulatory structure piece by piece, with each agency acting within its own remit.

The significance lies in the method. Where Congress has not passed a unified statutory framework, agency rulemaking becomes the primary channel through which market structure, registration, and oversight questions get addressed. For market participants, that means the operative rules may emerge incrementally, and the division of responsibility between the securities and derivatives regulators remains a central variable.

What to watch: further rulemaking activity from either agency, how the two regimes intersect where crypto assets could fall under both, and whether legislative efforts eventually consolidate the patchwork. Until then, firms operating in this space face a framework that is still being pieced together—making careful attention to each agency's individual actions more important than waiting for a single comprehensive rulebook.