According to PYMNTS.com, Senators John Boozman of Arkansas and Cory Booker of New Jersey released draft legislation on Monday, November 10 that would fundamentally shift crypto regulation from the Securities and Exchange Commission to the Commodity Futures Trading Commission. The bill creates new authority for the CFTC to regulate digital assets and establishes a clear definition of digital commodities. It includes consumer protections like customer fund segregation requirements, conflict of interest safeguards, and disclosure rules. The legislation follows the House’s passage of the CLARITY Act back in July, with pressure mounting for Senate action before year-end. Booker acknowledged there’s “significant work” ahead before the bill can advance from committee to the Senate floor.
The Great Crypto Turf War
Here’s the thing – this isn’t just some boring regulatory shuffle. We’re talking about a fundamental power struggle between two financial watchdogs with completely different approaches. The SEC has been playing cop, treating most crypto as securities that need strict oversight. Meanwhile, the CFTC tends to view them more like commodities – think wheat or oil – which means lighter touch regulation. So which approach is better for innovation? Honestly, it depends who you ask.
What This Actually Means For Crypto
If this bill passes, we’d finally get some clarity after years of regulatory ambiguity. The CFTC would oversee spot trading of digital commodities, which could mean clearer rules for exchanges and potentially more institutional participation. Customer funds would need to be segregated – no more FTX-style shenanigans where your deposits get lent out without your knowledge. And there are specific protections for self-custody, which is huge for people who want to control their own assets rather than trusting centralized platforms.
Don’t Hold Your Breath Just Yet
Booker’s concerns about CFTC resources are absolutely valid. The agency currently has a tiny budget compared to the SEC – we’re talking David versus Goliath territory. They’d need significant funding increases to properly oversee a market this complex. And let’s be real: getting anything through Congress these days is like herding cats. With elections coming up and political winds shifting, delaying into 2026 could kill this entirely. Basically, this is an important starting point, but we’re miles from the finish line.
The International Stakes Are High
While the US dithers, other regions are moving forward. The European Union already has MiCA regulations in place, creating a unified framework across 27 countries. Asia’s making moves too. Every month of US regulatory uncertainty pushes more innovation overseas. When you’re dealing with industrial-scale crypto operations or enterprise blockchain solutions, clarity matters. Companies need to know the rules before they invest millions – and right now, they’re looking elsewhere.
