Cryptocurrency regulatory power restructuring: CFTC may take full control of the spot market, SEC focuses on securities attributes

Original title: What Will a Mike Selig SEC Look Like For Crypto Markets?

Original authors: jrmiller, Sam Cooling, Bitcoins

Original translation by Peggy, BlockBeats

Editor's Note: The long-standing blurred boundaries of crypto regulation in the United States are being redrawn. With Mike Selig's nomination as CFTC chairman and Congress advancing new legislation, the division of labor between the SEC and CFTC is beginning to take shape at the policy level for the first time, and the regulatory structure is showing an unusually clear trend: the SEC focuses on securities; the CFTC focuses on the digital goods spot market.

This article summarizes the bill's content, hearing arrangements, and potential changes in the division of labor between the two agencies, providing a clear starting point for understanding U.S. crypto regulation. The following is a translation of the original text.

CFTC and SEC split crypto regulatory power

As the Trump administration moves forward with a new round of financial regulatory team appointments, the U.S. crypto regulatory system is undergoing its most significant power realignment in recent years.

Mike Selig, Trump's nominee for chairman of the Commodity Futures Trading Commission (CFTC), will testify before the Senate Agriculture Committee on November 19. Meanwhile, Congress is considering a new bill that would formally grant the CFTC primary regulatory authority over the digital asset spot market.

This move indicates that after years of overlapping regulations and enforcement controversies, U.S. regulators are attempting to "divide the roles" in crypto regulation through legislation.

Mike Selig is speaking

From legislation to nomination, the regulatory framework is gradually taking shape.

Driven by Senators John Boozman and Cory Booker, the bill's core provisions include expanding the CFTC's authority over digital goods and requiring it to establish a formal collaboration mechanism with the Securities and Exchange Commission (SEC). The draft also plans to provide new budgetary resources for the spot market regulatory system to support regulatory enforcement.

This direction echoes recent statements from the SEC. SEC Chairman Paul Atkins stated that the committee is developing a "token taxonomy" based on the Howey test and is studying exemption arrangements for the sale of digital assets.

These moves indicate that the SEC aims to establish clear rules on "when tokens are not securities" and to coordinate with the CFTC on other aspects.

On the surface, it's a technical rule adjustment, but behind it lies the SEC redefining its boundaries, focusing more on the securities attributes, and leaving other aspects to the CFTC.

This division of responsibilities has been clearly stated in public statements to Congress. Senator John Boozman stated that the CFTC is the right agency to regulate spot trading of digital goods; Senator Cory Booker added that the bill will grant the CFTC new powers and the resources needed to enforce market regulation.

As the roles of the two agencies continue to converge, the division of labor in the regulatory structure is gradually taking shape: the SEC focuses on securities; the CFTC is responsible for the digital commodities spot market.

This has been a long-standing point of contention in the crypto industry, and now it has been outlined in an official document for the first time in Washington.

Regulatory signals before the hearing

According to a notification from the Senate Agriculture Committee, Selig has been nominated as "Chairman and Commissioner" and will be questioned on November 19 at the Dexterity Office Building, G50. The rapid scheduling of the hearings has led to expectations that Washington hopes to complete the restructuring of the regulatory team and framework as soon as possible.

The draft bill also includes provisions on digital goods platform registration, customer fund segregation, conflict of interest management, and fee structures, attempting to establish a previously missing federal regulatory framework. Years of controversy surrounding custody standards, exchange registration, and overlapping enforcement have also been incorporated into this round of legislative discussions.

The market remains restrained, awaiting the next signal.

Following the announcement, market volatility was limited. Traders generally focused on the hearing itself and the next draft rule that the SEC will release. While the regulatory direction for the crypto industry is not entirely clear, discussions surrounding "division of labor" and "boundaries" are closer than ever to formal implementation.

The trajectory of this long-standing controversy will soon return to the hearing on November 19th.

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