The GAO has found regulators accelerating crypto oversight by relying on interpretive rules rather than traditional rulemaking. The review centers on how the SEC and CFTC classify crypto assets under securities laws through interpretive guidance, aiming for speed and clarity. The agencies contend that this approach reduces friction as digital asset markets expand. Under the Congressional Review Act’s Section 808(2), interpretive rules can take effect immediately when agencies justify the need for prompt action.
While the GAO notes the use of interpretive rules, it states that proposed rules were not published and public comment was not sought for these actions. The report emphasizes that its analysis concentrates on regulatory pathways rather than evaluating economic impact or policy effectiveness. Proponents argue the framework could lower costs for crypto issuers and support broader market adoption. In a related move, SEC and CFTC issued a joint interpretive guidance clarifying how federal securities laws apply to crypto assets, with classifications based on asset characteristics, use, and function.
The GAO’s role is to inform Congress and document procedural choices, not to validate outcomes. The findings illustrate a broader trend toward faster policy action in crypto regulation through interpretive rules.
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