A bipartisan Senate draft introduced today, Nov. 11, would transfer primary regulatory oversight of digital assets from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC), signaling a potential major shift in U.S. crypto policy.
Key Takeaways:
- Senators Boozman and Booker propose classifying most cryptocurrency tokens as “digital commodities” under CFTC oversight.
- The bill would require spot crypto exchanges, brokers, and dealers to register with the CFTC and follow disclosure and custody rules.
- It builds on previous acts like FIT21 and DCCPA, aiming for clearer boundaries between commodities and securities regulation.
The Senate Agriculture Committee released a bipartisan draft that would place oversight of most digital asset spot markets under the CFTC rather than the SEC. Tokens operating on “functional, decentralized” blockchains would be treated as digital commodities, while those tied to centralized issuers would remain under SEC scrutiny.
Senator Boozman said the CFTC is “the right agency to regulate spot digital commodity trading,” while Senator Booker described the proposal as “an important step toward comprehensive digital-asset legislation.”
For years, crypto firms have complained of regulatory ambiguity in the U.S., arguing that the SEC’s enforcement-first approach has hindered innovation. The proposed bill seeks to address that uncertainty by giving the CFTC clear jurisdictional authority over much of the crypto market.
Still, the legislation faces hurdles in both chambers of Congress and must overcome political differences over consumer protection and market oversight before it can pass.
Crypto Market Remains Subdued: BTC Steady at $105K, ETH Holds Near $3.6K
As of this writing (12:00PM UTC), Bitcoin (BTC) is trading at approximately $105,353, showing a price decline around 0.9% over the past 24 hours. Meanwhile, Ethereum (ETH) trades around $3,569.03, reflecting a 1.2% drop in the day.
Despite the bill’s introduction, market reaction has been restrained. Traders appeared cautious, keeping BTC in a narrow range between $104,000 and $107,000. Analysts noted that while regulatory clarity tends to improve long-term sentiment, near-term trading activity remains largely unaffected. Altcoins, on the other hand, follows the similar pattern, with Solana (SOL) and Cardano (ADA) dropping 0.7% and 2.9% respectively.
Industry Divided Over Potential Impact
The crypto industry has largely welcomed the proposal as a move toward more “fit-for-purpose” regulation. Many firms prefer the CFTC’s principles-based approach, which they view as more aligned with the decentralized nature of blockchain networks.
However, critics warn that the CFTC may not have the same resources or consumer protection infrastructure as the SEC. Some policy experts argue that moving oversight too quickly could weaken investor safeguards, especially in volatile DeFi and token markets.
Analysts believe the next major challenge lies in implementation. Even if the bill passes, the CFTC would still need to build new frameworks for exchange registration, disclosure, and digital custody, which could take months to conclude.
Outlook
The Senate’s latest bipartisan proposal to transfer crypto oversight from the SEC to the CFTC underscores Washington’s growing push for regulatory clarity. Although the market response is muted, the implications could be far-reaching that it has the potential to reshape how the U.S. defines and governs digital assets. Whether the bill advances or stalls, introducing and planning it marks a milestone in the evolving relationship between crypto innovation and federal regulation.
Summary
A bipartisan Senate draft would shift primary oversight of most spot digital assets from the SEC to the CFTC, proposing registration, disclosure, and custody rules for spot exchanges and related entities, while markets reacted cautiously.
