Bitcoin Updates: Lawmakers Seek Solution to Ongoing SEC and CFTC Dispute Over Crypto Oversight

The regulatory environment for cryptocurrencies in the United States is at a turning point as lawmakers work to resolve the ongoing jurisdictional dispute between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Two rival Senate proposals—the Agriculture Committee’s CFTC-led structure and the Banking Committee’s SEC-oriented “ancillary asset” approach—stand to significantly alter how digital assets are classified, how custody is managed, and how exchanges operate. These legislative efforts, along with renewed enthusiasm for new crypto ventures and

, underscore the rapidly changing nature of the industry.

The Agriculture Committee’s proposal, spearheaded by Senators John Boozman and Cory Booker, would make the CFTC the main regulator for “digital commodities” and their spot trading platforms. This model draws from established commodity oversight, mandating that exchanges, brokers, and dealers register with the CFTC and comply with rigorous standards for capital and asset custody. While

spot trading would be governed by the CFTC, ETFs would still be under the SEC’s purview, for trading platforms. In contrast, the Banking Committee’s Responsible Financial Innovation Act introduces an “ancillary asset” classification for tokens that blur the line between securities and commodities. This framework initially places such assets under SEC regulation but allows them to transition out of securities status once they achieve sufficient decentralization— for tokens such as .

Market sentiment has improved recently after the conclusion of the 43-day U.S. government shutdown, which had previously dampened risk appetite.

, buoyed by renewed capital flowing into Bitcoin ETFs, while Ethereum experienced robust buying as large holders accumulated more. Privacy-focused coins such as and saw additional gains after to transform a company into a Zcash treasury entity, further boosting the appeal of these assets amid economic uncertainty. helped spark a recovery in digital asset markets.

Technical analysis points to ongoing

for both Bitcoin and Ethereum, as ETF inflows and strengthening on-chain data reflect growing institutional trust. Still, experts warn that profit-taking and broader economic risks could limit further advances. on what constitutes an “investment contract” and also present ongoing challenges for exchanges navigating overlapping regulatory regimes.

For those investing in crypto, the balance between regulatory developments, technological progress, and market cycles is becoming ever more important. While the Senate’s proposals are still under debate, the rapid progress of blockchain projects and the durability of privacy coins highlight the industry’s disruptive potential. As the 2025 market cycle unfolds, the ability to adapt to regulatory changes and seize new opportunities may be just as crucial as any on-chain metric.