Crypto Regulation at a Turning Point: Escalating Jurisdiction Dispute Between SEC and CFTC

The U.S. Securities and Exchange Commission (SEC) is moving forward with plans to introduce a comprehensive regulatory system for digital assets through the proposed Crypto Market Structure Bill, aiming to close significant regulatory loopholes. SEC Chair Paul S. Atkins has stressed the importance of proactive regulation to bring crypto market operations in line with established financial protections, while also considering the unique nature of blockchain assets. Building upon the GENIUS Act, this bill is designed to improve trading transparency, curb market manipulation, and unify investor safeguards. By requiring crypto exchanges to provide more detailed reports and standardized disclosures, the legislation seeks to encourage greater institutional involvement and minimize regulatory ambiguity in the cryptocurrency sector SEC Chair Pushes Crypto Market Structure Bill — XRP Weak Hands Exit [ 1 ].

At the same time, legislative activity in Congress signals a possible change in regulatory power. A draft bill from the House Financial Services Committee suggests that certain "digital commodities" could be placed outside the SEC’s authority, transferring oversight of their secondary trading to the Commodity Futures Trading Commission (CFTC). The proposal defines "mature blockchain systems" as those that are open-source, decentralized, and lack any single party controlling more than 20% of the token supply. Tokens such as

, , and are considered to fit these requirements, although XRP’s regulatory clarity is still in question due to Ripple’s significant holdings. The bill also gives the SEC the authority to grant exemptions for existing tokens like XRP on an individual basis New House Market Structure Bill Would End SEC Oversight Over Most Crypto Assets [ 2 ].

In the meantime, blockchain data for XRP points to a possible market turning point. The Short-Term Holder (STH) Net Unrealized Profit/Loss (NUPL) metric is nearing levels that indicate capitulation, suggesting that short-term investors are selling at a loss—a trend that has often preceded accumulation periods in the past. Additionally, XRP’s Network Value to Transactions (NVT) ratio has dropped to its lowest point in five months, implying the asset may be undervalued compared to its network activity. Analysts observe that such scenarios frequently come before price recoveries, with XRP’s current price of $2.94 potentially paving the way for a rise toward $4.20 SEC Chair Pushes Crypto Market Structure Bill — XRP Weak Hands Exit [ 1 ].

These regulatory and market shifts are unfolding alongside broader trends in crypto adoption. The SEC’s postponement of spot ETF approvals has added to market uncertainty, but the introduction of the Market Structure Bill and the prospect of CFTC oversight could bring much-needed clarity, potentially impacting demand for XRP and other cryptocurrencies. October is shaping up to be a pivotal month, as legislative decisions and ETF outcomes are expected to influence investor attitudes. Together, on-chain analytics and regulatory changes indicate that the market may be approaching a significant transition, balancing the interests of institutions, retail investors, and long-term holders XRP News Today: Market Structure Bill Influences ETF Outlook [ 3 ] XRP Price News: Holds Above $3 With Market Structure Bill, ETFs, and the Fed in Focus [ 4 ].