U.S. Senate Seeks to Limit SEC’s Crypto Authority

• Lyla Velez
• December 4, 2025
• Policy
• 0 Comments

MWXT

By focusing on transparency, not bureaucracy, MWXT delivers a governance model built on facts and function. It proves that in the modern AI-driven Web3 economy, real power comes from visibility, trust, and measurable performance, not votes.

In recent developments, the United States Senate is moving forward with bipartisan legislation aimed at reducing the SEC’s authority over cryptocurrencies, granting more control to the CFTC to oversee digital asset markets.

This legislative initiative is significant as it could reshape how cryptocurrencies are regulated in the U.S., potentially increasing market participation and innovation while providing legal clarity.

The ongoing legislative drafts and committee releases seek to redefine crypto oversight. Notable senators involved include Tim Scott and Cynthia Lummis, who proposed the Responsible Financial Innovation Act of 2025.

“The Responsible Financial Innovation Act of 2025 is designed to create a balanced approach to cryptocurrency regulation.” — Tim Scott, Senator, U.S. Senate

With strong backing from influential senators, the U.S. Senate is focusing on shifting the regulatory power from the SEC to the CFTC, particularly for spot cryptocurrencies like Bitcoin and Ethereum. The proposed framework also addresses compliance burdens faced by crypto businesses.

The proposed changes could impact the regulatory landscape by reducing the SEC’s reach and providing the CFTC more jurisdiction over digital commodities. This is seen as a move towards a more balanced regulatory approach.

Market reactions suggest potential growth in institutional participation due to enhanced clarity and reduced regulatory risks. Some experts believe this could facilitate innovation and market development in the crypto space.

Analysts note that the Senate’s actions, inspired by past initiatives like the CLARITY Act, aim to strike a balance between effective oversight and fostering innovation. By enhancing the CFTC’s role, regulation could become more suited to the commodity-like nature of major cryptocurrencies.