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

a16z Partner Manifesto: Boutique VC is Dead, Go Big or Go Home

Untitled
I’m sorry, but it appears there’s no actual content from the original article provided for me to rewrite.…

Bitcoin Experiences Record 23% Decline in Early 2026
Key Takeaways Bitcoin has experienced a record-setting decline of 23% in the first 50 trading days of 2026.…

Whale Holding 105,000 ETH Faces $8.5 Million Loss
Key Takeaways A significant Ethereum holder, often termed a “whale,” has accumulated long positions in 105,000 ETH. The…

Bitcoin Faces Liquidity Challenges as $70,000 Rebound Struggles
Key Takeaways Bitcoin’s attempts to break the $70,000 mark face significant challenges due to weak liquidity and market…

Newly Created Address Withdraws 7,000 ETH from Binance
Key Takeaways A newly created cryptocurrency address withdrew 7,000 ETH from Binance within an hour, totaling $13.55 million.…

Balancer Halts reCLAMM-Linked Liquidity Pools for Security Check
Key Takeaways Balancer has temporarily halted reCLAMM-related liquidity pools due to security concerns. A report from the bug…

Whales Take on Ethereum: Major Profits from Leveraged Short Positions
Key Takeaways Three Ethereum whales are collectively reaping over $24 million in unrealized profits from short positions. The…

SlowMist Unveils Security Vulnerabilities in ClawHub’s AI Ecosystem
Key Takeaways SlowMist identifies 1,184 malicious skills on ClawHub aimed at stealing sensitive data. The identified threats include…

Matrixport Anticipates Crypto Market Turning Point as Liquidity Drains
Key Takeaways Matrixport notes a surge in Bitcoin’s implied volatility due to a sharp price drop. Bitcoin price…

Bitmine Withdraws 10,000 ETH from Kraken
Key Takeaways A newly created address linked to Bitmine withdrew 10,000 ETH from Kraken. The withdrawal value amounts…

In the face of the Quantum Threat, Bitcoin Core developers have chosen to ignore it

Don't Just Focus on Trading Volume: A Guide to Understanding the "Fake Real Volume" of Perpetual Contracts

Crypto Price Prediction Today 18 February – XRP, Bitcoin, Ethereum
Key Takeaways XRP’s potential as a replacement for SWIFT is bolstered by regulatory approvals, potentially driving its price…

XRP Price Prediction: XRP is Outpacing Solana and Targeting Binance Coin Next – Should You Invest Now?
Key Takeaways XRP Ledger has moved into the sixth place by tokenized real-world asset value, surpassing Solana and…

New AI Predicts the Price of XRP, Dogecoin, and Solana By 2026
Key Takeaways ChatGPT anticipates significant price increases for XRP, Dogecoin, and Solana by the end of 2026. XRP…

Arthur Hayes Shares Two Scenarios for Bitcoin Price, Calling for a Major Crypto Rally
Key Takeaways Arthur Hayes predicts a significant crypto rally fueled by a $572 billion liquidity injection from the…

Bitcoin Price Prediction: Abu Dhabi Gov Funds Buy $1 Billion in BTC – What Do They Know?
Key Takeaways Abu Dhabi has revealed a $1 billion stake in Bitcoin through major ETF investments, signaling strong…
a16z Partner Manifesto: Boutique VC is Dead, Go Big or Go Home
Untitled
I’m sorry, but it appears there’s no actual content from the original article provided for me to rewrite.…
Bitcoin Experiences Record 23% Decline in Early 2026
Key Takeaways Bitcoin has experienced a record-setting decline of 23% in the first 50 trading days of 2026.…
Whale Holding 105,000 ETH Faces $8.5 Million Loss
Key Takeaways A significant Ethereum holder, often termed a “whale,” has accumulated long positions in 105,000 ETH. The…
Bitcoin Faces Liquidity Challenges as $70,000 Rebound Struggles
Key Takeaways Bitcoin’s attempts to break the $70,000 mark face significant challenges due to weak liquidity and market…
Newly Created Address Withdraws 7,000 ETH from Binance
Key Takeaways A newly created cryptocurrency address withdrew 7,000 ETH from Binance within an hour, totaling $13.55 million.…