Bipartisan Legislation Assigns Crypto Regulation to CFTC to Clarify Oversight Uncertainty
- U.S. lawmakers propose shifting crypto regulation from SEC to CFTC via a bipartisan bill, reclassifying most digital assets as commodities. - The draft aims to resolve regulatory ambiguity stifling innovation, building on stalled House CLARITY Act efforts during the 38-day government shutdown. - Market optimism surged as shutdown relief pushed Bitcoin above $105k, with ETF outflows persisting amid anticipation of clearer CFTC-led oversight. - Critics warn of CFTC resource constraints, while proponents hi
The regulatory environment for cryptocurrencies in the United States is experiencing a significant transformation as lawmakers from both parties propose shifting oversight from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC). Senators John Boozman (R-Ark.) and Cory Booker (D-N.J.) have introduced a draft bill that would make the CFTC the chief authority over spot digital commodity markets, effectively categorizing most cryptocurrencies as commodities instead of securities
This legislative effort builds upon the CLARITY Act, which was previously approved by the House to clarify crypto regulation but was put on hold during the 40-day federal government shutdown that started in late October
The Senate’s proposed legislation highlights a growing agreement that the SEC’s enforcement-centric strategy has impeded the development of the crypto sector. By transferring regulatory duties to the CFTC—an agency with a background in commodities—the bill aims to foster innovation while ensuring consumer safeguards
Market observers are paying close attention to how this regulatory shift could affect ongoing ETF approvals. The CFTC’s expanded oversight of spot markets may simplify the approval process for crypto ETFs, though there are still unresolved questions regarding the regulation of staking services and stablecoins
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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