- Senate bill seeks to define crypto assets as securities or commodities
- Would clarify roles of SEC and CFTC in crypto regulation
- Could bring long-awaited legal certainty to U.S. markets
A new Senate bill could finally bring long-overdue clarity to the U.S. crypto industry by defining which digital assets are securities and which are commodities. For years, this gray area has left investors and companies in legal limbo, unsure which regulator — the SEC or the CFTC — holds jurisdiction over various cryptocurrencies.
The legislation, introduced by a bipartisan group of lawmakers, aims to draw a clear line between the two asset types. This would not only help crypto projects better understand their regulatory obligations but also streamline enforcement and oversight.
Under the proposed framework, assets that function more like investments and rely on the efforts of a third party (e.g., initial coin offerings) would fall under the SEC’s watch. Meanwhile, digital assets that operate more like traditional commodities, such as Bitcoin and possibly Ethereum , would be regulated by the CFTC.
Why This Matters for the Crypto Market
For years, the crypto market has operated in uncertainty. The SEC has taken enforcement actions against companies for allegedly offering unregistered securities, while others argue their tokens are commodities not subject to SEC rules. This confusion has made it hard for crypto startups to innovate without the risk of legal trouble.
By clearly dividing regulatory authority between the SEC and the CFTC, this bill could reduce that uncertainty. If passed, the legislation would provide legal protection and predictability for investors, exchanges, and developers alike. It could also attract more institutional investment by reducing compliance risks.
What’s Next?
The bill is still in its early stages and will need to pass both the Senate and House before becoming law. However, it represents a significant step forward in the conversation around crypto regulation in the United States. With bipartisan support and growing demand for clear rules, this bill could mark a turning point for how digital assets are governed.
