U.S. Senate Proposes CFTC As Primary Crypto Regulator

• Lyla Velez
• November 11, 2025
• Policy
• 0 Comments

A U.S. Senate proposal to transfer cryptocurrency regulatory authority from the SEC to the CFTC has been introduced, signaling significant potential changes in the regulatory landscape for digital assets in the United States.

This proposal could transform digital asset regulation in the U.S., shifting oversight to the CFTC, which may significantly affect affected markets and industries.

The proposed shift of regulatory authority from the SEC to the CFTC emerges from bipartisan concerns within the Senate. Historically, Gary Gensler and the SEC classified most digital assets as securities. In contrast, the CFTC has claimed these assets exhibit commodity-like characteristics.

Exchanges like Coinbase, Kraken, and Gemini, handling digital commodities, must register with the CFTC, potentially increasing compliance costs. The move also means permitted payment stablecoins will be overseen by banking regulators rather than securities regulators.

As CFTC officials stated, “Our agency is prepared to handle the complexities of cryptocurrencies as commodities, ensuring that these markets function fairly without compromising innovation.”

Experts suggest this change could alleviate some of the legal uncertainties that have long plagued the crypto industry. The classification shift may provide a more stable regulatory framework, resulting in positive sentiment for Bitcoin, Ethereum, and related tokens.

Regulatory decisions by U.S. government bodies can significantly impact digital currency markets. The shift in oversight could influence investments in decentralized finance and Layer 1 tokens. Regulators aim to balance innovation with market stability, considering past proposals and current market dynamics.