Caroline Pham, a Commissioner of the Commodity Futures Trading Commission (CFTC), has voiced concerns that the agency's recent charges against crypto exchange KuCoin (CRYPTO:KCS) may overstep into the Securities and Exchange Commission's (SEC) regulatory domain.

Highlighting the nuanced differences between securities and commodities laws, Pham's critique centers on the CFTC's interpretation that investor-held fund shares, typically overseen by the SEC as securities, could be classified under commodities law as leveraged trading activities.

The CFTC's action against KuCoin, initiated alongside the U.S. Department of Justice for operating an unregistered digital assets derivatives exchange, blurs the lines between the responsibilities of the CFTC and the SEC, according to Pham.

This development underscores the ongoing debate within the regulatory landscape over the jurisdiction of crypto assets, with the SEC and CFTC differing on their classifications of major cryptocurrencies like ether.

Pham's statement not only highlights the potential for regulatory overlap but also emphasizes the importance of clear jurisdictional boundaries to maintain the integrity of investor protection laws and the structured functioning of securities markets.