Key Points
- •The U.S. Senate proposes a bill to reduce SEC authority over crypto.
- •Leadership includes Senators John Boozman and Cory Booker.
- •CFTC could gain increased power in crypto regulation.
The U.S. Senate Agriculture Committee, led by Senators John Boozman and Cory Booker, proposed a bill on November 16, 2025, to shift crypto market oversight from the SEC to the CFTC.
The bill aims to address legal uncertainties in crypto regulation, potentially impacting market dynamics and digital asset classifications. Immediate market reactions remain under review as the legislation progresses.
Legislative Proposal and Oversight Shift
The U.S. Senate has introduced a draft bill aiming to curtail the SEC's authority and increase the CFTC's oversight over crypto markets. This bipartisan effort could reshape regulatory structures affecting digital assets.
This measure is led by Senator John Boozman and Senator Cory Booker from the Senate Agriculture Committee. The proposal reflects growing frustration over the SEC's regulatory approach and seeks significant changes in oversight.
Impact on Digital Commodities and Funding
The immediate impact includes a potential shift of oversight for digital commodities like BTC from the SEC to the CFTC. This aims to address historical resource gaps and regulatory uncertainties in the industry.
The legislation proposes a new funding stream for the CFTC, allowing the organization to better manage its responsibilities. It signals a pivotal shift in financial regulatory policies moving forward.
Potential Benefits for Digital Asset Companies
The proposal could relieve digital asset companies from SEC enforcement pressures, providing clearer compliance requirements under the CFTC's purview.
By analyzing historical regulatory challenges, the bill could bring more certainty and innovation growth within the crypto sector, affecting various classifications of digital assets.
Senator Booker's Concerns
"The bill was a first step, but lawmakers still have significant work to do before advancing the legislation out of committee... I’m specifically concerned about the lack of resources and the bipartisan commissioners at the CFTC, preventing regulatory arbitrage, as well as the ongoing corruption of public officials and whether Congress has created the correct guardrails to prevent those misdeeds. I urge my colleagues and external stakeholders to come together to address these issues." - Sen. Cory Booker, Senior Democrat, Senate Agriculture Committee