Bitcoin steadies as U.S. crypto bill nears SEC–CFTC split

What the crypto market structure bill would do now

Congress is moving a comprehensive crypto market structure bill that would split oversight between the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, with deadlines for exchanges, according to crypto.news (https://crypto.news/president-trump-signals-final-push-on-us-crypto-market-rules/). Proponents say the measure would create clearer rules of the road for digital assets and reduce jurisdictional friction.

Supporters have framed the bill as establishing a token taxonomy and clarifying which agency supervises which assets, as reported by Fox Business (https://www.foxbusiness.com/media/cftc-chief-says-pending-crypto-bill-make-us-gold-standard-digital-asset-regulation.amp?utm_source=openai). In practice, that would mean non-security digital assets fall under the derivatives regulator, while security-class tokens remain under the securities regulator, alongside new registration and compliance timelines for trading venues.

Backers argue that codifying this division could normalize listing standards, disclosures, custody rules, and market-integrity requirements across platforms. The bill’s immediate effect, if enacted, would be to trigger rulemakings that translate statutory categories into operational obligations for exchanges, brokers, and issuers.

Why it matters and the immediate impact for regulation

The legislation aims to resolve a long-running gap in federal oversight of spot crypto markets and to set uniform expectations for investor protections. The political attention is broad, with Sen. Elizabeth Warren preparing her own principles for digital-asset legislation, as noted by AOL (https://www.aol.com/warren-lays-her-own-framework-090000851.html), underscoring that policy contours are still being negotiated.

In assessing momentum, Michael S. Selig, Chair of the Commodity Futures Trading Commission, signaled in a January 2026 speech that the process is nearing completion (https://www.cftc.gov/PressRoom/SpeechesTestimony/seligstatement012026?utm_source=openai). He said Congress was “on the cusp of enacting historic digital asset market structure legislation,” describing it as a route to long-sought regulatory clarity.

Skeptics warn the allocation of oversight could dilute the securities regulator’s antifraud toolkit if definitions prove too narrow or porous, as reported by Business Insider (https://www.businessinsider.com/crypto-legislation-regulation-rfia-warren-lummis-gillibrand-sec-cftc-meltdown-2025-8?utm_source=openai). Any near-term impact will therefore hinge on how precisely the statute draws lines and how quickly agencies can propose, finalize, and enforce implementing rules.

At the time of this writing, Coinbase Global (COIN) trades at $161.53, down 1.70% intraday and 28.57% year to date, based on data from Yahoo Finance (https://finance.yahoo.com). Those figures illustrate how policy headlines may coincide with broader risk sentiment, even as the bill’s specifics target market plumbing rather than near-term valuation.

Open questions on oversight, definitions, and implementation

How SEC and CFTC authority could be divided

The legislation’s effectiveness will turn on how it defines securities, commodities, and intermediate categories such as ancillary assets or sufficiently decentralized networks. Davis Polk’s analysis on Columbia Law School’s Blue Sky Blog (https://clsbluesky.law.columbia.edu/2024/05/30/davis-polk-discusses-crypto-market-structure-bill-in-u-s-house/?utm_source=openai) notes that legacy securities and commodities statutes were not designed for digital assets, which complicates bright-line distinctions.

Definitional thresholds could determine whether token issuers must file securities-style disclosures or whether platforms must register as national securities exchanges versus commodity venues. Ambiguities around decentralization tests or functional use of tokens may lead to protracted rulemakings and, potentially, litigation to clarify edge cases.

Investor protection, resources, and compliance timelines

Passing a statute is only a first step; regulators must staff up, coordinate, and supervise new registrants to make protections real. Law360 (https://www.law360.com/articles/2349572/ex-cftc-chair-warns-crypto-bill-s-loopholes-still-too-wide?utm_source=openai) highlights warnings from former officials about enforcement capacity and definitional loopholes that could undermine the bill’s goals if not paired with adequate resources.

Compliance timelines for exchanges and issuers will be material if the law mandates swift registration, custody segregation, surveillance, and disclosure controls. Without synchronized rulemaking calendars and budgets, formal clarity on paper may not translate into consistent oversight in practice.