Senate Crypto Legislation Transfers Oversight to CFTC Amid Rising Partisan Debate
- U.S. Senate proposes bipartisan bill transferring crypto regulation to CFTC, limiting SEC's role and classifying most cryptocurrencies as commodities. - Trump's CFTC nominee Selig faces scrutiny over agency staffing and bipartisan governance, with Democrats warning of political bias risks under single Republican leadership. - Industry supports CFTC's expanded oversight for regulatory clarity, but critics question its capacity to enforce AML standards and manage crypto market growth. - Finalized framework
The United States Senate has introduced a bipartisan draft bill designed to clarify cryptocurrency regulations, designating the Commodity Futures Trading Commission (CFTC) as the chief federal regulator for digital assets. Senators John Boozman (R-AR) and Cory Booker (D-NJ) presented the proposal, which outlines the CFTC’s responsibilities over crypto spot markets, the classification of digital commodities, and the establishment of market structure guidelines, while
A key issue in the discussion is the confirmation of Michael Selig, former President Donald Trump’s nominee to head the CFTC. During a Senate Agriculture Committee session, Selig was questioned about his hesitation to pledge additional resources for the agency or to ensure bipartisan representation. At present, the CFTC has only one commissioner, Republican Caroline Pham, who is also acting chair.
The proposed legislation would establish a national regulatory system that treats most cryptocurrencies as commodities, placing them under the CFTC’s supervision. This approach reflects increasing support from both the industry and lawmakers for the CFTC’s expertise in derivatives and global commodities.
The future of the bill remains uncertain. The Senate Agriculture Committee, which has oversight of the CFTC, is expected to review the proposal before it proceeds to the full Senate. Meanwhile, Selig’s confirmation hearing is scheduled for Thursday, with a final Senate vote anticipated soon. If approved, Selig would be the sole commissioner,
Major players in the crypto industry have largely supported expanding the CFTC’s role, seeing it as a move toward clearer regulation. The bill’s focus on self-custody rights and fewer intermediary requirements has also been positively received by advocates of decentralized finance (DeFi)
As discussions progress, the results of these legislative and regulatory efforts will shape whether the U.S. secures its role as a leader in the global crypto market or faces increased division and uncertainty in its digital asset sector.
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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