The United States is moving closer to a sweeping overhaul of cryptocurrency regulation, with President Donald Trump signaling that comprehensive market structure legislation could soon reach his desk.
The proposed bill, introduced as S. 3755 and H.R. 3633, would establish clear lines of authority between the two primary financial regulators overseeing digital assets: the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). If passed, it would mark one of the most significant regulatory developments for the US crypto market to date.
Dividing Oversight Between SEC and CFTC
At the heart of the legislation is a formal split in responsibilities. The SEC would oversee digital assets classified as securities, while the CFTC would take primary authority over digital commodities such as Bitcoin and Ethereum.
This division aims to address years of uncertainty that have left exchanges, brokers, and developers navigating overlapping or unclear rules. Under the proposed framework, crypto exchanges and intermediaries would have 180 days after enactment to register for provisional status, allowing them to continue operating while meeting new compliance requirements.
The House of Representatives already passed the Digital Asset Market Clarity Act in July, advancing the effort to define regulatory boundaries. The Senate, however, has been slower to act and remains the key hurdle before the bill can move forward.
In late January, the Senate Agriculture Committee narrowly approved the Digital Commodity Intermediaries Act with a 12–11 vote. The Senate Banking Committee must now reconcile its version of the legislation with the Agriculture Committee’s draft, particularly as a White House deadline approaches for stablecoin frameworks.
Stablecoins and Deadlines
Stablecoins, which are digital tokens pegged to traditional currencies like the US dollar, are a central focus of the legislation. Lawmakers face a February 28 deadline set by the White House to finalize a regulatory framework for these assets.
The bill also calls for joint rulemaking between the SEC and CFTC within 18 months of enactment. That process would address more complex issues, including transactions that blend characteristics of securities and commodities, as well as margin and leverage structures used in crypto trading.
CFTC Chairman Michael Selig has suggested publicly that the legislation could reach the president within months, reflecting growing momentum behind the push for regulatory clarity.
Industry Reaction and Ongoing Scrutiny
Not all stakeholders are fully satisfied with the draft proposals. Major industry players, including cryptocurrency exchange Coinbase, have criticized earlier versions of the bill, arguing that certain provisions could impose heavy restrictions on decentralized finance platforms and stablecoin issuers.
Meanwhile, some members of Congress are calling for investigations into cryptocurrency ventures linked to President Trump, including projects such as WLFI. Those calls add a layer of political scrutiny as lawmakers debate the broader regulatory framework.
A Turning Point for US Crypto Policy
For years, the US crypto industry has operated in a regulatory gray zone, with companies often facing enforcement actions before clear rules were established. The current legislation represents an effort to replace uncertainty with structure, defining who regulates what and setting firm timelines for compliance.
While final passage is not yet guaranteed, the latest developments suggest that Washington may soon deliver the clarity that both regulators and the crypto industry have been seeking. If enacted, the new framework could reshape how digital assets are traded, supervised, and integrated into the broader financial system.
