Senate Proposes Split Crypto Oversight Between CFTC & SEC
The US Senate Agriculture Committee on November 10 unveiled a draft bill to establish clearer crypto oversight by splitting responsibilities between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) under the Commodity Exchange Act. The proposal defines “digital commodities,” blockchain, DeFi and DAOs, and adds investor protections. It mandates joint rulemaking on margin requirements and intermediary oversight. Sections covering decentralized finance remain under negotiation, with developers seeking legal clarity. Senators John Boozman and Cory Booker co-sponsored the bill, which also addresses CFTC staffing limits and proposes industry fees for funding. Lawmakers expect committee votes by year-end and possible Senate approval by Q1 2026. Traders should monitor evolving crypto oversight rules as expanded CFTC jurisdiction could reshape compliance and trading strategies.
Neutral
The proposed split in crypto oversight between the CFTC and SEC is expected to reduce regulatory uncertainty without imposing immediate restrictions. In the short term, markets may see modest volatility as traders adjust to potential changes in compliance requirements. In the long term, clearer definitions for digital commodities, DeFi, and DAOs could encourage institutional participation and improve market stability. While funding solutions and DeFi sections remain unresolved, the bill’s progress signals a structured regulatory environment. Overall, these developments are neutral for cryptocurrency prices, as greater clarity balances the costs of compliance with the benefits of legal certainty.