Wall Street's top regulators are with plans to oversee cryptocurrency and prediction markets under the Trump administration. The Securities and Exchange Commission and Commodity Futures Trading Commission have submitted regulatory measures to the White House, marking a significant shift from the Biden era's stricter approach. These moves could establish formal guidelines for industries that have recently surged toward mainstream finance.

Prediction markets have grown into a multi-billion dollar business, while digital asset firms have gained momentum with a president aiming to make the US the "crypto capital" of the world. The SEC's measure focuses on applying federal securities laws to certain types of crypto assets, potentially establishing a token taxonomy that would determine whether assets fall under SEC or CFTC jurisdiction. This distinction could fundamentally impact how crypto firms register and operate.

Commission-level guidance requires a vote and carries more weight than staff statements, though it stops short of full rulemaking. While SEC Chairman Paul Atkins has called for Congressional action on crypto market structure legislation, he's also indicated the agency has authority to act independently. Meanwhile, the CFTC is reviewing prediction market rules after receiving a measure from the White House, signaling a broader regulatory embrace of these event-based trading platforms.