Key Takeaways
- CFTC Chairman Michael Selig said Congress is close to passing crypto market
structure legislation.
- The bill could soon reach President Trump’s desk, according to Selig.
- The measure would clarify oversight of U.S. crypto
markets and trading venues.
WASHINGTON
D.C. (NewsBlock) -
CFTC
Chairman Michael Selig said Congress is “poised” to send long-awaited
crypto market structure legislation to President Trump, signaling potential
resolution to years of regulatory uncertainty for digital asset markets.
The comments come as lawmakers
finalize negotiations on a bill that would define how cryptocurrencies are
regulated in the United States, a development closely watched by exchanges,
investors, and regulators amid growing institutional participation in digital
assets.
Congress
Nears Agreement
Selig, who leads the Commodity Futures Trading Commission,
said lawmakers in both chambers have made substantial progress toward aligning
House and Senate versions of the legislation.
“We are closer than we’ve ever
been,” Selig said at a public policy event in Washington. “Congress appears
ready to move this across the finish line.”
The legislation would establish a
clearer division of authority between the CFTC and the Securities and Exchange
Commission, a central issue that has stalled prior efforts.
What
the Bill Covers
The proposed framework would grant
the CFTC expanded oversight of crypto spot markets for commodities such as
bitcoin, while setting registration and compliance requirements for trading
platforms, brokers, and custodians.
Supporters say the bill would
replace regulation by enforcement with a defined rulebook, giving firms clearer
expectations. “Market participants need
certainty,” Selig said. “This bill provides a structure that aligns innovation
with oversight.”
Why
the Timing Matters
Crypto markets have grown sharply in
scale and complexity, with U.S.-based trading volumes and institutional
exposure increasing through exchange-traded products and derivatives.
At the same time, firms have faced
enforcement actions and legal disputes over whether digital assets fall under
securities or commodities law.
“This uncertainty has pushed
activity offshore,” Selig said. “Clear rules help keep innovation in the United
States.”
Role
of the CFTC
The CFTC currently oversees crypto
derivatives markets but has limited authority over spot trading, which accounts
for the majority of crypto activity.
Under the bill, the agency would gain direct supervisory powers over registered crypto trading venues, including authority to set market conduct rules and enforce compliance. Selig said the agency is prepared to assume that role if Congress grants the authority.
Industry
Reaction
Crypto firms and financial
institutions welcomed Selig’s comments as a sign that legislative action may
finally be imminent.
“Market structure legislation is the
missing piece,” said a policy executive at a major U.S. crypto exchange.
“Without it, firms operate in a gray zone.”
Some consumer advocates urged
caution, arguing that stronger protections must accompany expanded market
access.
Political
Landscape
The bill has drawn bipartisan
support, reflecting shifting attitudes toward crypto in Congress as the sector
becomes more integrated with traditional finance.
Selig said coordination between
committees and leadership has improved compared with previous attempts. “There is recognition on both sides
that the status quo is not working,” he said.
The White House has not publicly
commented on the legislation’s prospects. A spokesperson for Donald Trump declined to comment on
whether the president would support the bill if it reaches his desk.
Regulatory
Implications
If enacted, the legislation would
mark the most significant overhaul of U.S. crypto regulation to date. It would
also set precedents for how emerging technologies are integrated into existing
financial law.
Analysts said the bill could reduce legal risk for firms and encourage greater participation by banks, asset managers, and institutional investors. “Regulation unlocks capital,” said a regulatory policy analyst. “Uncertainty suppresses it.”
Challenges
Ahead
Despite progress, some details
remain unresolved, including the scope of asset definitions and coordination
between regulators.
Critics have warned that overly
broad definitions could leave gaps or create conflicts in oversight.
Selig acknowledged the concerns but
said compromise is necessary. “Legislation is about balance,” he said.