Bitcoin News Today: Senate Splits on Crypto's Future: CFTC Expansion vs. SEC Oversight

The U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) are poised to resume full operations as Congress advances competing legislative proposals to resolve the regulatory divide over crypto assets. With the Senate Agriculture and Banking Committees unveiling contrasting frameworks, the industry faces a pivotal moment that could reshape market structures, custody rules, and classification standards for tokens.

The Agriculture Committee's draft, spearheaded by Senators John Boozman and Cory Booker, expands the CFTC's authority over "digital commodities" and their spot markets, mirroring the agency's oversight of traditional commodities like oil and gold. The bill mandates registration for exchanges, brokers, and dealers, requiring qualified custodians and segregated customer assets to prevent conflicts of interest. This approach would bring Bitcoin and Ethereum spot trading under CFTC jurisdiction, shifting regulatory focus from investor disclosures to market surveillance and liquidity transparency. Meanwhile, the Banking Committee's Responsible Financial Innovation Act grants the SEC explicit control over "ancillary assets"-fungible digital commodities distributed via investment contracts-establishing a conditional pathway for tokens to transition from securities to commodities as projects decentralize.

The regulatory uncertainty has been temporarily alleviated by the end of the 43-day federal government shutdown, which had frozen ETF approvals and crypto rulemaking. With the SEC and CFTC now operational, BlackRock's iShares Bitcoin Trust ETF (IBIT) and other spot Bitcoin ETFs could see renewed momentum. Total assets under management for these products currently stand at $140 billion, up 40% year-to-date, despite recent volatility following the October 10 market crash. Analysts note that the resumption of SEC reviews could accelerate clarity for pending ETF applications, though challenges remain for U.S. Bitcoin miners, whose global market share stagnated at 37.75% amid international competition.

Adding urgency to the legislative push, President Donald Trump's nominee for CFTC chair, Mike Selig-currently leading the SEC's Crypto Task Force-faces a Senate confirmation hearing on November 19. If confirmed, Selig would oversee the agency as Congress finalizes a bill potentially granting the CFTC direct authority over crypto spot trading. His appointment comes as the Senate Agriculture Committee prepares to markup its bill, while the Banking Committee works on finalizing its version. A unified bill could reach the House by early 2026, though partisan divisions and coordination rules remain hurdles.

The market's immediate reaction to the shutdown's end has been mixed. Bitcoin rebounded above $102,000 after hitting weekly lows near $100,800, while Ethereum surged 2.36% to $3,533, reflecting tentative optimism. However, on-chain data reveals a divergence between short-term sentiment and long-term accumulation, with over $1.3 billion in Ethereum whale purchases signaling underlying confidence. Analysts caution that institutional Bitcoin ETFs remain vulnerable to macroeconomic shifts, as evidenced by fluctuating inflows and the lack of sustained daily gains above $200 million.

The competing Senate drafts highlight a broader struggle to define the boundaries of securities versus commodities in crypto. The Banking Committee's "ancillary asset" framework offers a structured exit for tokens like Ethereum to shed securities status once decentralization thresholds are met, while the Agriculture bill reinforces CFTC oversight for spot markets. This duality could force U.S. exchanges to navigate dual regulatory regimes, registering with both agencies for different product lines.

As the legislative process unfolds, the industry's focus will shift to enforcement clarity and implementation timelines. While neither draft fully resolves the SEC-CFTC turf war, they outline a regulatory roadmap that could stabilize market expectations. For now, the outcome hinges on congressional negotiations, Senate confirmations, and the Fed's dovish stance ahead of its December meeting-a combination that may yet tilt the balance of power in crypto's evolving landscape.

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