The regulatory structure for digital assets in the U.S. is undergoing a major overhaul, aimed at clearly delineating the jurisdictions of the SEC (Securities and Exchange Commission) and the CFTC (Commodity Futures Trading Commission) through both legislative progress and key executive appointments.
Mike Selig, nominated to be the next CFTC Chairman, is scheduled for a confirmation hearing on November 19, 2025. Concurrently, Congress is reviewing a new bill intended to formally grant the CFTC primary regulatory oversight of the digital asset spot market categorized as "Digital Commodities." This push is a direct response to years of industry calls to resolve the ambiguity surrounding regulatory authority.
The Division of Authority:
SEC (Securities Focus): The SEC is set to focus primarily on assets deemed "securities," working to establish a clearer token taxonomy based on the Howey Test and defining exemptions for digital asset sales.
CFTC (Commodity Focus): The CFTC is positioned to take over the regulation of the spot market for "digital commodities" (including likely Bitcoin and Ether). This mandates establishing a federal regulatory framework encompassing platform registration, customer fund segregation, conflict of interest management, and market manipulation prevention.
This regulatory shift is a vital signal that the U.S. is moving away from an enforcement-driven regulatory environment, characterized by uncertainty, toward a rules-driven framework that offers predictability. Establishing clear boundaries is expected to significantly reduce legal risks for crypto companies and is a crucial factor that will unlock institutional capital for faster, more confident entry into the U.S. crypto market.
Posted Using INLEO