Bipartisan Bill Shifts Crypto Regulation from SEC to CFTC
US Senators John Boozman and Cory Booker have introduced a bipartisan bill to shift crypto regulation from the SEC to the Commodity Futures Trading Commission (CFTC). The proposal reclassifies most digital assets as commodities, granting the CFTC direct oversight of spot markets and building on the House CLARITY Act to establish a unified crypto regulation framework. It includes measures to boost CFTC resources and strengthen DeFi monitoring. Industry groups welcome the change for clearer compliance rules and predictable oversight. Key challenges remain Congressional approval, agency resistance and transitioning existing SEC actions. If enacted, the bill could reshape digital commodities trading, clarify token issuance standards and position the US as a leader in crypto regulation, balancing investor protection with innovation.
Bullish
By consolidating oversight under the CFTC and reclassifying tokens as commodities, the bill reduces regulatory uncertainty and overlaps. Clearer crypto regulation can attract institutional capital and support product innovation. In the short term, positive sentiment may boost trading volumes as firms anticipate smoother compliance. Over the long term, predictable rules and enhanced DeFi monitoring can foster sustainable market growth and investor confidence, making the overall impact bullish.