U.S. Crypto Bill to End Regulatory Split, Spur Innovation by 2025

The U.S. cryptocurrency regulatory landscape is poised for a significant shift as lawmakers anticipate the passage of a comprehensive crypto market bill by year-end 2025. The legislation, currently under review, aims to establish a clear regulatory framework by dividing oversight between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). This bifurcation seeks to address longstanding ambiguities in the sector, where overlapping jurisdictions have created compliance challenges for market participants.

Key provisions of the bill include a formal delineation of responsibilities, with the CFTC overseeing derivatives and futures markets, while the SEC will focus on securities-related activities. Lawmakers have emphasized the urgency of the SEC’s role, urging the agency to expedite rulemaking to align with the bill’s timeline. This move is expected to reduce regulatory fragmentation, which has historically hindered innovation and investor confidence in the U.S. crypto market.

Market analysts view the bill as a potential catalyst for Bitcoin’s performance. The White House has flagged the legislation as a seasonal tailwind for BTC, particularly as institutional adoption and macroeconomic factors converge. With Bitcoin’s dominance in the crypto market currently at 59% (as of August 2025), the bill’s passage could accelerate capital rotation into altcoins, provided regulatory clarity alleviates investor caution. However, the Altcoin Season Index, which measures the performance of top 100 altcoins relative to Bitcoin, remains below the 75 threshold historically associated with broad altcoin rallies, suggesting a Bitcoin-centric market for now.

Industry stakeholders, including institutional investors and blockchain firms, have welcomed the proposed framework. Digital asset treasuries (DATs) and stablecoin issuers, which have seen growing institutional demand, stand to benefit from a more defined regulatory environment. For instance, companies like Bitmine Immersion Technologies have already acquired significant ETH holdings, signaling confidence in a post-regulatory clarity market.

While the bill’s timeline hinges on congressional negotiations, its anticipated passage reflects broader efforts to position the U.S. as a global crypto leader. A U.S.-UK taskforce, established to strengthen cross-border crypto market ties, has also highlighted the importance of harmonized regulations in fostering innovation. Analysts caution, however, that execution risks remain, including potential litigation over the SEC’s interpretation of securities law and the CFTC’s enforcement capabilities.

Source: [1] Altcoin Season Index Hits 80 As Bitcoin Death Cross Forms (https://themarketperiodical.com/2025/09/20/altcoin-season-index-hits-80-as-bitcoin-death-cross-forms-2/)