USA Trends and Developments Contributed by: Andrea S Kramer, ASKramer Law
derivatives but the derivatives markets as a whole, and even beyond. But there is always a “but”. Federal derivatives regula - tors face critical leadership challenges, structural and process changes, and shifts in regulatory strategies and direction. They need to tackle aggressive agendas against a backdrop of efficiency mandates, shrink - ing workforces and dwindling resources. The federal government’s 2.4 million workforce is expected to be reduced by about 308,000 by year-end, which is a 12.8% reduction. Already understaffed regulators are being stretched past their limits. While staff attrition at the SEC and CFTC is likely pal - ing in comparison to the deep cuts at the IRS, all three regulators are experiencing such attrition and deficits in the leadership ranks, as well as changes in func - tional responsibilities and geographic reorganisations. The CFTC is at a fork in the road: will it rebuild, will it continue to shrink, or might it disappear altogether? These questions are likely to be resolved when Con - gress reconvenes in the autumn. In response to the administration’s pro-crypto push, derivatives regulators shifted their enforcement strate - gies, moved away from regulation by enforcement to regulation by rule-making, and backed away from the modus operandi of prior years where regulatory viola - tors faced enforcement actions. PWG Report Findings The PWG issued its report to the President on July 30, providing five objectives to integrate crypto into the US financial markets: • positioning the United States as the crypto world leader; • allowing banks to serve crypto businesses, and allow bank customers access to crypto; • strengthening the US dollar through adoption of dollar-backed stablecoins; • modernising anti-money laundering rules to com - bat fraud; and • ensuring fair and predictable crypto taxation that eliminates tax compliance hurdles.
The PWG Report and four of its five objectives are addressed in more detail in the following sections (banking regulations are beyond this article’s purview). Positioning the United States as the Crypto World Leader The PWG recommends that Congress establish a clear crypto framework, draw clear regulatory juris - dictional lines and encourage intragovernmental col - laboration. This section looks at pending legislation and relevant SEC and CFTC actions, addresses new products, and considers 24/7 trading and settlement. The CLARITY Act The Digital Asset Market Clarity Act of 2025 (the “CLARITY Act”) was passed by the House in July and sent to the Senate. The House version “clarifies” crypto regulation, by calling crypto “digital commodi - ties” subject to CFTC jurisdiction. In August, however, the Senate Banking Committee released its own ver - sion, giving the SEC primary authority over “ancillary assets”. At the time of writing, it is not known how the CLARITY Act will ultimately be enacted. The Anti-CBDC Act Executive Order 14178 prohibits federal agencies from issuing central banking digital currency (CBDC). The Anti-CBDC Act passed the House and was sent to the Senate in mid-July. It provides that US digital currency policy “remains in the hands of the American people so that any future development of digital cash… [is] anchored around privacy, individual sovereignty, and free market competitiveness”, according to the House Majority Whip, Tom Emmer. SEC On January 21st, the SEC established its Crypto Task Force to “set the SEC on a sensible regulatory path that respects the bounds of the law”. As the agency noted, enforcement creates “an environment hostile to innovation and conducive to fraud”, and there has been “confusion about what is legal”. The SEC went on to announce roundtables on regulation, custody, tokenisation, moving assets on chain, and exploring the question of what is a “security” subject to SEC jurisdiction.
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