The SEC and CFTC continue to operate under overlapping and contested authority over digital assets, with the SEC asserting jurisdiction over assets resembling investment contracts and the CFTC claiming commodities and derivatives. No comprehensive federal crypto market structure legislation has resolved this split, leaving firms in a grey zone that varies asset by asset and product by product.
For Armada's crypto repo desk, this ambiguity is directly operational. BTC and ETH have historically leaned toward CFTC commodity treatment, but SOL and HYPE remain contested. Any repo structure using these assets as collateral could attract SEC scrutiny if tokens are deemed securities, affecting permissible counterparties, disclosure obligations, and product design.