Policers of crypto in the U.S. SEC or CFTC? Two new drafts of the Senate may at last provide the answer to that question. They both seek to control digital assets but in a different way and their success would redefine the rules of custody, exchange requirements and classification of tokens.
Draft One: CFTC Goes in Charge of Crypto Commodities
The proposal presented by the Senate Agriculture Committee increases the authority under the Commodity Futures Trading Commission. It approaches Bitcoin and other digital commodities as traditional assets, establishing new conventions of the spot markets. Trades would be recorded, segregate customer accounts, and pursue a more austere adherence, as surveillance and custody would be dragged nearer to traditional markets.
Draft Two: SEC Recives “Ancillary Asset” Powers
The draft presented by the Senate Banking Committee provides the SEC with the control over any digital assets that begin as securities and develop in a decentralized manner. It brings in a mechanism where a process of tokens graduating out of securities status could in the long run be realized, provided that control is decentralized.
Both Drafts Mean More Disclosure and Oversight
The combination of the bills implies a scenario in which crypto exchanges will be registered twice, CFTC as the main agent of spot trading, and SEC as the main agent of security tokens. Governance and token risks should be told by issuers and the ETFs are well in the control of the SEC.
There is still no Clarity, but a Map is Beginning to Form
Neither draft is law yet. Its version in the House has been passed but the negotiations in the Senate are still going on. Nevertheless, these comments indicate the future: the more organized, fragmented regulation of the U.S. crypto markets. Traders, exchanges, and token teams are to make preparations.
