US Crypto Regulation Shake-Up: CFTC to Potentially Take Over Spot Market
Original Article Title: What Will a Mike Selig SEC Look Like For Crypto Markets?
Original Article Authors: jrmiller, Sam Cooling, Bitcoins
Translation: Peggy, BlockBeats
Editor's Note: The long-standing blurred regulatory boundaries in the U.S. around crypto are being redrawn. With Mike Selig nominated as CFTC chair, new legislation proposed, and clearer roles emerging between the SEC and CFTC, a rare policy-level delineation of responsibilities is unfolding: SEC focusing on securities; CFTC focusing on the digital commodity spot market.
This article summarizes the bill's content, hearing schedules, and potential changes in the two agencies' roles, providing a clear starting point for understanding U.S. crypto regulation. The following is the translation of the original article.
CFTC and SEC Divide Crypto Regulatory Powers
As the Trump administration advances a new round of financial regulatory team appointments, the U.S. crypto regulatory system is experiencing one of the clearest power realignments in recent years.
The Commodity Futures Trading Commission (CFTC) chair nominee Mike Selig will attend the Senate Agriculture Committee confirmation hearing on November 19. Meanwhile, Congress is considering new legislation that aims to formally grant the CFTC primary regulatory authority over the digital asset spot market.
This development shows that, after years of regulatory overlap and enforcement disputes, U.S. regulatory agencies are attempting to legislatively delineate crypto regulation responsibilities.

Mike Selig Speaking
From Bill to Nomination, Regulatory Path Taking Shape
The bill, driven by Senators John Boozman and Cory Booker, includes key provisions such as expanding the CFTC's authority over digital commodities and requiring 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 market regulatory system to support regulatory enforcement.
This direction aligns with recent statements from the SEC. SEC Chairman Paul Atkins stated that the commission is developing a "token taxonomy" based on the Howey test and is exploring exemption arrangements for digital asset sales.
These measures indicate the SEC's goal of establishing clear rules for "when a token is not a security" and coordinating with the CFTC on other aspects.
While appearing as a technical rule adjustment, the underlying implication is that the SEC will redefine its own boundaries, focusing more on securities attributes and leaving other aspects to the CFTC.
In public statements in Congress, this division of labor has already been clearly expressed. Senator John Boozman stated that the CFTC is the appropriate agency to oversee digital commodity spot trading; Senator Cory Booker added that the bill will give the CFTC new powers and the resources needed to enforce market oversight.
As the positioning of the two agencies continues to converge, the division of regulatory structure is slowly taking shape: the SEC focuses on securities; the CFTC is responsible for the digital commodity spot market.
This has long been a contentious boundary in the crypto industry and is now for the first time being delineated in Washington in formal documents.
Regulatory Signals Before the Hearing
According to the Senate Agriculture Committee's notification, Selig is listed as the nominee for "Chairman and Commissioner" and will undergo questioning on November 19 at Room G50 of the Dirksen Building on Capitol Hill. The rapid scheduling of the hearing has led to external expectations that Washington aims to quickly complete the reorganization of the regulatory team and framework.
The draft bill also includes provisions such as digital commodity platform registration, customer fund segregation, conflict of interest management, and fee structures, attempting to establish a previously lacking federal regulatory framework. Disputes that have revolved around custody standards, exchange registration, and enforcement overlap for years have also been included in this round of legislative discussions.
Market Maintains Restraint, Awaiting Next Signal
Following the announcement, market volatility has been limited. Traders are generally focusing on the hearing itself and the next version of rule draft that the SEC will release. Although the regulatory direction of the crypto industry is not yet entirely clear, discussions surrounding "division of labor" and "boundaries" are closer to formal implementation than ever before.
The direction of this long-standing dispute will return to the hearing on November 19 in the short term.
You may also like

CLARITY Act Stalled: How Coinbase's Revolt Against U.S. Crypto Rules Could Freeze the Crypto Market (2026 Update)
Jan 2026: The CLARITY Act imploded when Coinbase opposed Senate's stablecoin yield ban. Explore the 3 'poison pills' that froze crypto regulation and moved markets.

Penguin Token Sells Off Amid Market Fluctuations
Key Takeaways A significant PENGUIN token holder has started liquidating their holdings, resulting in $40,000 worth of tokens…

OWL Tokens Transferred in Potential Sell-off Alert
Key Takeaways $2.1 million in OWL tokens were moved from a team’s wallet, raising concerns about a possible…

Global Risks Influence Bitcoin Fluctuations: QCP Asia’s Insight
Key Takeaways Persistent macroeconomic uncertainties cause global markets to retreat into risk-off mode. Japanese bond yields surge to…

Whale Leverages a 2x Long Position on 3,436 ETH
Key Takeaways A crypto whale utilized 2x leverage to go long on 3,436 ETH with an average entry…

Avantis Token Experiences Surge as It Faces Key Resistance
Key Takeaways Avantis token (AVNT) recorded a single-day surge exceeding 27%, outperforming other tokens in its sector such…

Enso’s Recent Liquidation Sparks Market Volatility
Key Takeaways Enso experienced a dramatic $11.67 million in liquidations, with a significant 70.7% involving short positions, indicating…

PENGUIN Token Skyrockets Fueled by White House Post
Key Takeaways The Nietzschean Penguin (PENGUIN) token has experienced a significant price surge following a social media post…

Crypto Traders Shift from PENGUIN to GHOST
Key Takeaways After significant gains, PENGUIN investors are reallocating their funds to newer cryptocurrencies such as GHOST. On-chain…

U.S. Government Shutdown Threat Impacts Bitcoin and Crypto Markets
Key Takeaways The risk of a U.S. government shutdown has surged, with predicted odds now approaching 80% as…

Crypto Users Face Threat from Massive 149 Million Credential Infostealer Data Breach
Key Takeaways: A massive data breach involving 149 million records was discovered, posing rising risks for crypto users.…

Crypto Takeaways from Davos: When Politics and Finances Collide
Key Takeaways Trump’s Geopolitical Crypto Push: U.S. President Trump emphasized the urgency of crypto regulation as a geopolitical…

South Korea’s Coinone Considers Stake Sale Amid Rising Coinbase Interest
Key Takeaways Coinone, a regulated cryptocurrency exchange in South Korea, is contemplating a significant stake sale as consolidation…

PENGUIN Memecoin Surges 564% Following Viral White House Social Media Post
Key Takeaways The Nietzschean Penguin (PENGUIN) memecoin skyrocketed by 564% after a White House social media post went…

Could Europe Sell US Debt if a Greenland Deal Doesn’t Come Through?
Key Takeaways The geopolitical tensions involving Greenland could lead Europe to consider offloading US debt as a strategic…

In the Battle of Chains, Distribution Reigns Supreme
Key Takeaways: The future of blockchain dominance is predicted to favor established companies with large user bases, as…

Crypto’s Next Battle: Privacy Faces a Chicken-Egg Dilemma with Regulators
Key Takeaways The integration of cryptocurrencies into bank systems is fueling a privacy versus transparency conflict. Privacy-preserving tech…

FCA Approaches Final Consultation Phase on Key Crypto Regulations
Key Takeaways The UK’s Financial Conduct Authority (FCA) is in the final stage of consultations concerning new crypto…
CLARITY Act Stalled: How Coinbase's Revolt Against U.S. Crypto Rules Could Freeze the Crypto Market (2026 Update)
Jan 2026: The CLARITY Act imploded when Coinbase opposed Senate's stablecoin yield ban. Explore the 3 'poison pills' that froze crypto regulation and moved markets.
Penguin Token Sells Off Amid Market Fluctuations
Key Takeaways A significant PENGUIN token holder has started liquidating their holdings, resulting in $40,000 worth of tokens…
OWL Tokens Transferred in Potential Sell-off Alert
Key Takeaways $2.1 million in OWL tokens were moved from a team’s wallet, raising concerns about a possible…
Global Risks Influence Bitcoin Fluctuations: QCP Asia’s Insight
Key Takeaways Persistent macroeconomic uncertainties cause global markets to retreat into risk-off mode. Japanese bond yields surge to…
Whale Leverages a 2x Long Position on 3,436 ETH
Key Takeaways A crypto whale utilized 2x leverage to go long on 3,436 ETH with an average entry…
Avantis Token Experiences Surge as It Faces Key Resistance
Key Takeaways Avantis token (AVNT) recorded a single-day surge exceeding 27%, outperforming other tokens in its sector such…