Crypto and bitcoin have problems the CFTC and SEC can't fix - American Banker

The debate over how to regulate digital assets often centers on which agency should hold authority — the Commodity Futures Trading Commission or the Securities and Exchange Commission. But according to analysis in American Banker, the industry's deeper problems may sit beyond the reach of either regulator.

That framing matters because it shifts the conversation from jurisdiction to substance. Questions of which token is a security or a commodity are important, yet they do not address structural issues such as market fragmentation, custody arrangements, or the limits of disclosure-based oversight in markets that trade around the clock across borders.

For market participants, the practical takeaway is that regulatory clarity, however welcome, should not be mistaken for a complete solution. Watch how the agencies define their roles, but also monitor developments in market infrastructure, custody standards, and cross-border coordination. Those areas may shape the asset class's trajectory as much as any enforcement action or rulemaking.