Major adjustments in U.S. cryptocurrency regulation, CFTC may take full control of the spot market

Original Title: What Will a Mike Selig SEC Look Like For Crypto Markets?
Original Authors: jrmiller, Sam Cooling, Bitcoins
Compiled by: Peggy, BlockBeats

Editor's Note: The long-ambiguous regulatory boundaries for crypto in the U.S. are being redrawn. With Mike Selig nominated as CFTC Chairman and Congress advancing new legislation, the division of labor between the SEC and CFTC is beginning to take shape at the policy level, revealing a rare clarity in the regulatory structure: the SEC focuses on securities; the CFTC emphasizes the digital commodity spot market.

This article summarizes the content of the bill, hearing arrangements, and potential changes in the division of labor between the two agencies, providing a clear starting point for understanding U.S. crypto regulation. Below is the original text compilation.

### Division of Crypto Regulation Between CFTC and SEC

As the Trump administration pushes for a new round of financial regulatory team appointments, the U.S. crypto regulatory system is undergoing the most definitive power reshuffle in recent years.

Mike Selig, the nominee for Chairman of the Commodity Futures Trading Commission (CFTC), is set to attend a confirmation hearing before the Senate Agriculture Committee on November 19. Meanwhile, Congress is reviewing a new bill that aims to formally grant the CFTC primary regulatory authority over the digital asset spot market.

This trend indicates that after years of regulatory overlap and enforcement disputes, U.S. regulatory agencies are attempting to delineate the boundaries of crypto regulation through legislation.

![](https://admin2049.chaincatcher.info/upload/image/20251114/1763084887297-410831.webp)
> Mike Selig is speaking

### From Bill to Nomination, Regulatory Path Gradually Taking Shape

The bill, promoted by Senators John Boozman and Cory Booker, includes key provisions to expand the CFTC's authority over digital commodities and requires it to establish a formal collaboration mechanism with the Securities and Exchange Commission (SEC). The draft also plans to provide new budget resources for the spot regulatory framework to support regulatory enforcement.

This direction resonates with the SEC's recent statements. SEC Chairman Paul Atkins indicated that the commission is developing a "token taxonomy" based on the Howey test and is exploring exemptions for digital asset sales.

These initiatives suggest that the SEC's goal is to set clear rules for "when tokens are not securities" and to coordinate with the CFTC on other aspects.

On the surface, these are technical rule adjustments, but they imply that the SEC will redefine its boundaries, focusing more on securities attributes while leaving other aspects to the CFTC.

In public statements in Congress, this division of labor has been clearly articulated. Senator John Boozman stated that the CFTC is the appropriate agency to regulate digital commodity spot trading; Senator Cory Booker added that the bill will empower the CFTC with new authority and the resources needed for market oversight.

As the positioning of the two agencies continues to converge, the division of labor in the regulatory structure is slowly taking shape: the SEC focuses on securities; the CFTC is responsible for the digital commodity spot market.

This has been a long-standing contentious boundary in the crypto industry, now depicted for the first time in Washington in the form of an official document.

### Regulatory Signals Before the Hearing

According to the Senate Agriculture Committee's notice, Selig is listed as the "Chairman and Commissioner" nominee and will be questioned on November 19 in the G50 office of the Dirksen Senate Office Building. The rapid advancement of the hearing arrangements has led to expectations that Washington hopes to quickly complete the restructuring of the regulatory team and framework.

The bill draft also includes provisions for digital commodity registration, customer fund segregation, conflict of interest management, and fee structures, attempting to establish the previously missing federal regulatory framework. Years of disputes surrounding custody standards, exchange registration, and enforcement overlap have also been included in this round of legislative discussions.

### Market Remains Cautious, Awaiting Next Signals

Following the announcement, market volatility has been limited. Traders are generally focusing on the hearing itself and the next version of the rule draft that the SEC will release. While the regulatory direction for the crypto industry is not yet fully clear, discussions surrounding "division of labor" and "boundaries" are closer to formal implementation than ever before.

The trajectory of this long-standing dispute will return to the hearing on November 19.

\[[Original Link](https://99bitcoins.com/news/altcoins/what-will-a-mike-selig-sec-look-like-for-crypto-markets/)\]