Bitcoin News Today: Congress Tries to Resolve SEC-CFTC Crypto Regulatory Tug-of-War

The U.S. cryptocurrency landscape is undergoing a pivotal transformation as Congress attempts to resolve the long-standing regulatory tug-of-war between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Two competing Senate drafts—the Agriculture Committee's CFTC-centric framework and the Banking Committee's SEC-focused "ancillary asset" model—threaten to reshape custody rules, market classifications, and exchange operations for digital assets. These proposals, combined with surging interest in emerging crypto projects and a recent market rebound, highlight the sector's evolving dynamics.

The Agriculture Committee's draft, led by Senators John Boozman and Cory Booker, positions the CFTC as the primary overseer of "digital commodities" and their spot markets. This approach mirrors traditional commodity regulations, requiring exchanges, brokers, and dealers to register with the CFTC and adhere to strict capital and custody rules. While Bitcoin spot markets would fall under CFTC jurisdiction, ETFs would remain under SEC oversight, creating a dual framework that complicates compliance for exchanges. Conversely, the Banking Committee's Responsible Financial Innovation Act introduces an "ancillary asset" category for tokens straddling the securities-commodities line. This model allows the SEC to regulate such assets initially but provides a pathway for projects to "graduate" from securities treatment once decentralization thresholds are met—potentially offering clarity for tokens like Ethereum.

Amid regulatory uncertainty, a wave of innovative presale projects is capturing investor attention. BlockDAG, a hybrid blockchain merging Bitcoin's security with Solana's scalability, has raised over $435 million in its presale, touting 15,000 transactions per second and EVM compatibility. DeepSnitch AI, Best Wallet Token, and Remittix are also gaining traction for their AI-driven analytics, multi-chain wallet solutions, and cross-border payment innovations, respectively—a shift toward utility-driven growth. These projects reflect a shift toward utility-driven growth, where technological differentiation and real-world applications outweigh speculative hype.

Market sentiment has also seen a recent uptick following the end of the 43-day U.S. government shutdown, which had triggered a pullback in risk assets. Bitcoin rebounded above $102,000, supported by renewed inflows into Bitcoin ETFs, while Ethereum saw strong demand amid whale accumulation. Privacy coins like Zcash and Decred surged further as the Winklevoss twins announced a $50 million investment to rebrand a firm as a Zcash treasury company, reinforcing the asset class's appeal amid macroeconomic volatility. The U.S. government shutdown ended, spurring recovery in crypto markets.

Technical indicators suggest continued momentum for Bitcoin and Ethereum, with ETF inflows and improving on-chain metrics signaling institutional confidence. However, analysts caution that profit-taking and macroeconomic uncertainties could temper gains. The SEC's delayed rulemaking on "investment contract" definitions and the CFTC's expanded oversight also pose regulatory headwinds for exchanges operating in dual jurisdictions.

For investors, the interplay between regulatory clarity, technological innovation, and market cycles is becoming increasingly critical. While the Senate drafts remain in discussion, the rapid evolution of projects like BlockDAG and the resilience of privacy coins underscore the sector's potential for disruption. As the 2025 market cycle progresses, the ability to navigate regulatory shifts and capitalize on emerging use cases may prove as valuable as any on-chain signal.