FIT21: Who Regulates What?

The Financial Innovation and Technology for the 21st Century Act (FIT21) creates the first clear split between SEC and CFTC jurisdiction over digital assets. The key question: is the blockchain decentralized? If yes → CFTC (commodity). If no → SEC (security). This page visualizes every party's role in the new framework.

Regulatory Jurisdiction Map

Click each zone to see what falls under it

🏛️
SEC
Securities & Exchange Commission
Digital Asset Securities
Tokens on centralized blockchains
Pre-decentralization tokens
ICO/IEO token sales
Restricted digital assets
Securities exchanges (digital)
Broker-dealers handling tokens
🌾
CFTC
Commodity Futures Trading Commission
Digital Commodities
Tokens on decentralized blockchains
Post-decentralization tokens
Cash/spot commodity markets
Bitcoin & Ether (confirmed)
Commodity exchanges (digital)
Futures & derivatives
🛡️
Excluded
Neither SEC nor CFTC
Carved Out
Permitted payment stablecoins
NFTs (non-fungible, non-financial)
Decentralized protocol governance tokens*

The Decentralization Test

FIT21's key innovation: a measurable test that determines whether a token is a security or commodity. Drag the sliders to see how a token gets classified.

Classification
🏛️ SECURITY (SEC)
Issuer owns >20% of tokens
SecurityCommodity

Token Lifecycle: Security → Commodity

How a token transitions from SEC jurisdiction to CFTC jurisdiction over time

Party Roles in the New Ecosystem

Every participant has defined obligations under FIT21. Click a party to see their requirements.

🏢

Token Issuers

Projects launching tokens

🔄

Exchanges

Trading platforms (CEX & DEX)

👔

Broker-Dealers

Intermediaries & market makers

🔒

Custodians

Asset safekeeping services

🌐

DeFi Protocols

Decentralized applications

👤

End Users

Retail & institutional investors

Registration & Compliance Flow

Key Numbers

Decentralization Threshold
20%
House Vote (May 2024)
279-136
Democrat Support
71 votes
Exemption Period
12 months

Stablecoin Carve-Out

  • Permitted payment stablecoins — excluded from both SEC & CFTC
  • Fraud protection — still subject to anti-fraud rules
  • Registered firm rules — exchanges listing stablecoins must still comply
  • Separate legislation — full stablecoin framework expected in parallel bill