Definition ∞ CFTC primary oversight refers to the U.S. Commodity Futures Trading Commission’s leading role in regulating certain digital assets identified as commodities. This authority extends to derivatives contracts based on these digital commodities, aiming to prevent market manipulation and fraud. The CFTC’s jurisdiction provides a specific regulatory framework for a segment of the digital asset market.
Context ∞ The precise delineation of which digital assets fall under CFTC primary oversight versus Securities and Exchange Commission jurisdiction remains a central regulatory discussion in the United States. This classification significantly influences how various tokens are traded and offered. Achieving clarity on this regulatory boundary is crucial for market participants, as it determines applicable compliance requirements and shapes the future development of regulated digital asset products.