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.

[Original Article Link]

Welcome to join the official BlockBeats community:

Telegram Subscription Group: https://t.me/theblockbeats

Telegram Discussion Group: https://t.me/BlockBeats_App

Official Twitter Account: https://twitter.com/BlockBeatsAsia