Crypto Regulations Shift
US and Philippine regulators signal shift towards formal rulemaking for crypto assets
The crypto regulatory landscape is undergoing a significant shift, with the US Securities and Exchange Commission (SEC) signaling a move away from its "enforcement-first" approach. During Gary Gensler's tenure as SEC Chair from 2021 to 2025, the agency launched numerous enforcement actions against crypto companies under existing securities laws. However, this approach left many market participants uncertain about which rules applied to their operations. The central issue is that US financial laws were not originally designed to accommodate blockchain-based assets.
The SEC's new focus is on formal rulemaking, with a near-term emphasis on tokenizing existing securities rather than native crypto assets. This shift is expected to provide greater clarity for market participants. In recent appearances, SEC officials have highlighted the need for updated regulations that can effectively address the unique characteristics of blockchain-based assets. For instance, the issue of identifiable ownership is a key challenge in applying traditional securities law to crypto assets.
Meanwhile, regulators in other countries are also making progress in developing frameworks for crypto assets. In the Philippines, SEC Commissioner Rogelio Quevedo has stated that the regulator is prepared to enable the tokenization of real-world assets (RWAs). Quevedo believes that the Philippines has the necessary legal basis and supervisory mindset to support asset tokenization, with a focus on consumer protection. This development is significant, as it could pave the way for greater adoption of crypto assets in the country.
In related news, the Financial Accounting Standards Board (FASB) discussed expanding the scope of Subtopic 350-60 to include additional crypto asset structures in April 2026. The board also considered guidance on when certain stablecoins may qualify as cash equivalents. This move is expected to provide greater clarity for public companies that are looking to engage with digital assets. As the crypto regulatory landscape continues to evolve, market participants are eagerly awaiting further developments.
The Commodity Futures Trading Commission (CFTC) has also been active in regulating crypto lenders. In a recent case, the CFTC banned Celsius CEO Alex Mashinsky from trading for life, closing the regulator's first crypto-lender case. Mashinsky had filed a handwritten motion in May 2026 seeking to vacate his 12-year sentence. The case highlights the regulator's growing focus on oversight of crypto lending platforms. As the crypto industry continues to grow and mature, regulators are increasingly taking a more nuanced approach to oversight, balancing the need for investor protection with the need to foster innovation.
As I reflect on the current state of crypto regulations, I firmly believe that a shift is necessary to protect investors and maintain market integrity. If nothing changes, the winners will be the large corporations and wealthy individuals who have the resources to navigate the complex and often murky landscape of cryptocurrency regulations. They will continue to exploit loopholes and manipulate the system to their advantage, leaving smaller investors and ordinary people vulnerable to fraud and financial loss. It's time for policymakers to step in and create a more transparent and equitable regulatory framework.
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