Bitcoin News Update: Senate Divided Over Crypto Regulation: CFTC Authority or SEC Supervision

As Congress moves forward with rival legislative plans to address the regulatory split over digital assets, the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) are set to fully resume their activities.

, the crypto sector stands at a critical crossroads that could redefine how markets operate, how assets are held, and how tokens are categorized.

The Agriculture Committee’s proposal, led by Senators John Boozman and Cory Booker, would broaden the CFTC’s jurisdiction to include “digital commodities” and their spot markets,

such as oil and gold. The legislation , as well as brokers and dealers, and mandates the use of qualified custodians and the separation of customer assets to avoid conflicts of interest. This framework would place and spot trading under CFTC oversight, shifting the regulatory emphasis from investor disclosures to monitoring markets and ensuring liquidity transparency. At the same time, would give the SEC clear authority over “ancillary assets”—fungible digital commodities distributed through investment contracts—creating a conditional process for tokens to move from being treated as securities to commodities as decentralization increases.

The regulatory limbo was

, which had stalled ETF approvals and progress on crypto regulations. Now that the SEC and CFTC are back in operation, BlackRock’s iShares Bitcoin Trust ETF (IBIT) and other spot Bitcoin ETFs may regain . These products currently manage $140 billion in assets, , even after recent turbulence following the October 10 market downturn. Experts point out that the SEC’s return to reviewing applications could speed up decisions on pending ETFs, though , with their global share stuck at 37.75% due to international rivalry.

, President Donald Trump’s pick for CFTC chair, Mike Selig—who currently heads the SEC’s Crypto Task Force—will appear before the Senate for confirmation on November 19. as lawmakers work to finalize a bill that could hand the CFTC direct oversight of crypto spot markets. His nomination coincides with the Senate Agriculture Committee’s markup of its bill, while the Banking Committee is finalizing its own version. , but partisan disagreements and procedural rules remain significant barriers.

Market response to the end of the shutdown has been mixed. Bitcoin climbed back above $102,000 after dropping to weekly lows near $100,800, and Ethereum jumped 2.36% to $3,533,

. Still, blockchain data shows a gap between short-term market mood and long-term accumulation, with over $1.3 billion in Ethereum bought by large holders, suggesting underlying confidence. remain exposed to broader economic trends, as seen in inconsistent inflows and the absence of sustained daily increases above $200 million.

The Senate’s rival proposals underscore the ongoing debate over how to distinguish securities from commodities in the crypto space.

provides a structured route for tokens such as Ethereum to lose their securities label once decentralization criteria are met, while the Agriculture bill strengthens CFTC control over spot markets. This could require U.S. exchanges to comply with both agencies for different offerings.

As lawmakers continue their work, the industry’s attention will turn to enforcement details and implementation schedules. While neither proposal fully settles the SEC-CFTC jurisdictional dispute, both lay out a regulatory path that could help stabilize market expectations.

, , and the Federal Reserve’s dovish approach ahead of its December meeting—a combination that could ultimately influence the balance of power in the evolving crypto sector.

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