SEC, CFTC Lean on Interpretive Rules to Speed Up U.S. Crypto Oversight

U.S. regulators are moving to accelerate crypto oversight by relying on interpretive rules, a tactic aimed at delivering faster clarity than traditional rulemaking. A new Government Accountability Office (GAO) review outlines the procedural route taken for a joint Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) rule, published April 8. The report focuses on process rather than evaluating the policy's merits. Central to the GAO's findings is the agencies' decision to frame the action as interpretive. The report states the rule "provides an interpretation of the definition of 'security' as applied to crypto assets." That classification determines which legal requirements apply and which can be avoided. By treating the guidance as an interpretive rule, the SEC and CFTC were able to bypass standard notice-and-comment procedures. The GAO notes the agencies concluded the interpretation could "take effect immediately" under 5 U.S.C. § 808(2) because interpretive rules are exempt from the Administrative Procedure Act's notice and comment requirements. It also records that the agencies did not publish a proposed rule or solicit public comments. The GAO further reports that regulators described the framework as one that "should reduce costs for issuers of digital securities and crypto asset-related securities," while indicating a formal cost-benefit analysis was not required. The document also notes the agencies' approach to categorizing crypto assets "based on their characteristics, uses, and functions," signaling a structured effort to map digital assets to existing securities-law concepts. While the GAO does not assess effectiveness, the review underscores a broader regulatory trend: using interpretive authority to move crypto policy into place more quickly, a development likely to influence market structure and adoption.