Senate Debate on Crypto: CFTC Authority or SEC Securities Regulation

Efforts in Congress to settle the ongoing dispute over which agency—the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC)—should regulate crypto assets are gaining momentum as federal agencies return to work following the shutdown. Two rival Senate proposals, supported by the Agriculture and Banking Committees, outline different approaches to digital asset regulation, while

adds further urgency to the discussion.

The Agriculture Committee’s draft, led by Republican John Boozman and Democrat Cory Booker,

to include “digital commodities” and their spot markets. Under this plan, crypto exchanges, brokers, and dealers would need to register with the CFTC, comply with capital and custody standards, and keep customer assets separate. Although the bill allows for joint rulemaking with the SEC, it avoids complex topics like decentralized finance (DeFi), effectively making the CFTC the main regulator for spot trading. .

On the other hand, the Banking Committee’s Responsible Financial Innovation Act

over “ancillary assets”—fungible digital commodities linked to investment contracts. This proposal would let tokens move out of securities status once their governance is sufficiently decentralized, potentially allowing projects like to change their regulatory classification. The draft also , responding to industry demands for more regulatory certainty.

The two drafts are closely tied to

, who currently serves as chief counsel for the SEC’s Crypto Task Force and is nominated to lead the CFTC. His Senate confirmation hearing is set for Nov. 19, 2025, as lawmakers work to finalize new rules for market structure. Selig’s experience in crypto regulation— supporting rule-based oversight—indicates he may favor expanding the CFTC’s role in spot markets. His nomination comes after the withdrawal of former CFTC commissioner Brian Quintenz, whose candidacy was blocked by intense lobbying from the Winklevoss twins .

The end of the record 43-day federal shutdown has also reignited regulatory activity. Agencies like the SEC and CFTC, which had suspended rulemaking and ETF reviews during the closure,

. This has raised hopes for the approval of spot ETFs, to launch products as soon as November 12–13. Experts point out that more than 130 crypto ETFs are awaiting SEC approval, and the agency’s return to full operations could .

Meanwhile, the crypto market has started to recover, with Bitcoin climbing back above $102,000 after dropping to weekly lows during the shutdown

. Analysts and traders attribute the rebound to increased regulatory clarity and the possibility of more accommodative Federal Reserve policies after the shutdown. Ethereum also experienced strong buying interest, trading near $3,533, while altcoins such as XRP and rallied on speculation related to ETFs .

Although the Senate proposals are still in draft stages, they mark a pivotal moment in the ongoing regulatory debate. For exchanges and token issuers, whether the CFTC or SEC takes the lead will influence custody rules, market design, and compliance expenses. As Selig’s confirmation nears and the Senate continues its deliberations,

that could reshape the U.S. digital asset landscape for years ahead.