Commodity Futures Trading Commission (CFTC) Chairman Michael Selig noted that the United States could soon become the world’s leading model for regulating cryptocurrencies if Congress passes a new market structure bill.
Speaking this week, Selig said the proposed legislation would finally bring long-awaited clarity to digital asset markets that have operated for years without clear rules, pushing innovation and investment overseas.
Selig argued that the absence of a clear regulatory framework has hurt both consumers and businesses. He said the bill would give regulators, companies, and investors a shared understanding of how digital assets are classified and who oversees them, creating a more stable environment for growth.
The bill, he said, would provide regulators, companies, and potential investors with a shared understanding of where assets fall and who will now oversee them, and create a more stable environment for the growth of this industry.
New bill aims to clarify crypto rules
The U.S. crypto industry has operated in a gray area for years, as regulators have sought to apply existing laws that were not yet formulated for digital asset technology. Such uncertainty has caused markets to “languish,” Selig said, prompting many crypto companies to move abroad in search of clearer rules.
Speaking on Mornings with Maria on Wednesday, Selig said the legislation is primarily aimed at providing clarity. Because the rules applied to the U.S. were not specified, innovators and entrepreneurs have found it difficult to cultivate, since they don’t know which rules apply to the products they make or who the regulator is, he said.
Selig said the bill would establish a straightforward “token taxonomy” to help determine which digital assets are securities and which are not. This distinction is essential because securities fall under the SEC’s jurisdiction, while the CFTC regulates commodities.
Many of these digital assets have been treated as securities by default under the current system, Selig said. He said the model is outdated and doesn’t really reflect how crypto markets are functioning now.
Most tokens are commodities and should be regulated accordingly. He added that expanding the CFTC’s authority over non-security digital assets would establish some structure, promote responsible innovation, and safeguard players from fraud and abuse.
Bill sets clear boundaries between the SEC and the CFTC
At the heart of the proposed bill is a clearer division of responsibilities between the CFTC and the SEC. Under law, Selig said, it would also help resolve long-running jurisdictional debates that have created confusion for both regulators and the industry.
Under these new circumstances, the SEC would still oversee digital assets that meet the definition of securities. However, assets used predominantly to trade a digital asset, or those used largely as part of the network and for other financial services under current exchange conditions, would fall under the CFTC’s jurisdiction.
Selig noted that this is the real world of digital markets and will better align U.S. regulation with how crypto assets are used in practice. CFTC is also capable of regulating complex and quickly emerging markets like futures and derivatives for decades, and that is what he did,” said.
The legislation would also target prediction markets, including Polymarket and Kalshi. They provide online platforms for trade contracts based on predictions of real-world event outcomes, such as economic indicators and polls. Selig said that the CFTC has monitored prediction markets for over 20 years.
He said the new legislation would clarify rules for these platforms and support innovation, rather than preemptively blocking new products before they reach the market.
He criticized past attempts to prohibit certain contracts, particularly around political events, and said the agency should not be a “merit regulator” that decides in advance which products are allowable, such as whether they would be allowed into a market.
Instead, he said, the CFTC would establish rules, enforce them consistently, and defend its authority in court when needed.
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