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CFTC's Expansion into Crypto: Providing Guidance or Hindering Progress?

CFTC's Expansion into Crypto: Providing Guidance or Hindering Progress?

Bitget-RWA2025/11/20 07:02
By:Bitget-RWA

- U.S. Senate Banking Committee will vote in December 2025 on a crypto bill designating Bitcoin and Ether as CFTC-regulated commodities to resolve SEC-CFTC jurisdiction conflicts. - The bill mandates exchange rules like customer fund segregation and conflict controls, addressing vulnerabilities exposed by FTX-style failures. - Global regulatory shifts and U.S. firms' European expansion (e.g., Ondo, BitGo) highlight urgency for a framework balancing innovation with risk mitigation. - Proponents claim the bi

The U.S. Senate Banking Committee plans to hold a vote in December 2025 on a pivotal bill that could redefine how cryptocurrencies are regulated in the country. This proposed legislation

under the oversight of the Commodity Futures Trading Commission (CFTC), seeking to settle the ongoing jurisdictional dispute between the SEC and CFTC regarding crypto regulation. The bill further , such as keeping customer assets separate and enforcing measures to prevent conflicts of interest, in response to weaknesses revealed by incidents like the FTX collapse. Should the Senate approve and , the legislation would create a comprehensive federal regulatory system for digital assets, supporting the increasing institutional interest and the rise of crypto ETFs.

The bill has led to significant bipartisan debate, especially concerning how decentralized finance (DeFi) should be governed. Some lawmakers, including Senator John Boozman (R-Ark.), believe the CFTC ought to

, while others are worried about potential systemic threats and illicit activities within DeFi. Michael Selig, nominated by Trump to lead the CFTC, for blockchain-based applications, remarking that "DeFi is a popular term, but we need to examine the specific features and the presence of intermediaries." During his confirmation, concerns were raised about the agency's during Trump's term, casting doubt on its ability to implement new regulations.

CFTC's Expansion into Crypto: Providing Guidance or Hindering Progress? image 0

On the international stage, evolving regulations are shaping the environment for this bill.

simplified digital regulations to enhance competitiveness, including postponements for stringent AI rules and relaxed data requirements for AI development. At the same time, U.S.-based companies such as and BitGo are entering European markets, with to provide tokenized equities and ETFs throughout the EEA, and BitGo offering custody services for Deutsche Digital Assets' ETP. These developments highlight the pressing need for U.S. authorities to establish regulations that both encourage innovation and manage risks.

Supporters of the bill claim it would bring greater stability to the crypto sector by clarifying regulatory responsibilities and building confidence. Opponents, on the other hand, caution that granting the CFTC too much power could hinder DeFi advancements. As the December vote nears, the result will

and whether President Trump’s expected endorsement matches the bill’s final provisions.

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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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