The cryptocurrency industry stands on the cusp of a transformative moment as SEC Chair Paul Atkins confidently predicts that Congress will deliver a comprehensive crypto market structure bill to President Trump’s desk by year’s end. This long-awaited legislation promises to resolve years of regulatory ambiguity by delineating oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), fostering innovation while protecting investors.
The Road to Regulatory Clarity
For years, the U.S. crypto sector has navigated a patchwork of enforcement actions and jurisdictional turf wars between the SEC and CFTC. Assets like Bitcoin have been treated variably as commodities or securities, stifling institutional participation and driving activity offshore. The proposed bill, building on precursors like the Financial Innovation and Technology for the 21st Century Act (FIT21) passed by the House in 2024 and the bipartisan CLARITY Act introduced in 2025, aims to end this uncertainty.
Under the draft framework, the CFTC would gain primary authority over digital commodities—fungible, peer-to-peer assets on public blockchains that achieve sufficient decentralization, such as Bitcoin. These would include tokens on “mature blockchain systems” certified through a structured process, unlocking secondary spot trading. Meanwhile, the SEC retains jurisdiction over digital asset securities, primary fundraising, and tokenized traditional assets. This division aligns with definitions refined by SEC Commissioner Hester Peirce and Chair Atkins, emphasizing transparent, source-code-driven operations free from centralized control.
Key provisions include requirements for segregating customer assets, prohibiting undisclosed use for staking without explicit consent, and establishing standards for custodians and trading venues. The bill also mandates joint SEC-CFTC rulemakings on definitions, mixed transactions, delisting, portfolio margining, and cross-market coordination, signaling a new era of inter-agency harmony.
Agency Momentum Fuels Legislative Progress
Recent actions by both regulators underscore the bill’s urgency. In August 2025, SEC Chair Atkins launched Project Crypto, directing staff to draft rules for crypto distributions, custody, and trading. He explicitly stated that “most crypto assets are not securities,” proposing purpose-fit disclosures, exemptions for initial coin offerings, airdrops, and network rewards. This marks a sharp departure from prior enforcement-heavy approaches, prioritizing innovation through safe harbors and licensing for mixed-asset platforms.
The CFTC responded swiftly with its “Crypto Sprint,” announced by then-Acting Chair Caroline Pham, enabling spot crypto trading on CFTC-registered futures exchanges. Joint statements in September 2025 heralded “a new day” of harmonization, culminating in roundtables and withdrawn outdated guidance on virtual currency segregation. New CFTC Chair Michael Selig, sworn in December 2025, affirmed the agency’s readiness, noting Congress’s poised action to position the U.S. as the “Crypto Capital of the World.”
These initiatives build on the GENIUS Act signed in July 2025 and Senate Banking Committee principles released by Chairman Tim Scott alongside Senators Cynthia Lummis, Bill Hagerty, and others. A July 2025 discussion draft and Request for Information advanced the Boozman-Booker framework in the Senate Agriculture Committee, mirroring House-passed CLARITY Act elements.
Legislative Path and Bipartisan Momentum
As of early 2026, two Senate committees prepare for pivotal markups on competing bills. The Senate Banking Committee targets January action, following Chairman Scott’s 2025 Year-in-Review highlighting market structure progress. House Financial Services, under Chairman French Hill, faces calls from Rep. Maxine Waters for oversight hearings on SEC shifts, including dismissed enforcement cases and reduced reporting.
Bipartisan support remains strong: FIT21 passed 279-136 despite White House opposition, and CLARITY garnered widespread backing. The 236-page CLARITY Act allows platforms to register with either agency based on asset type, while preserving SEC’s role in decentralization assessments. H.R. 3633, the Digital Asset Market Clarity Act of 2025, details provisions like anti-fraud authority over permitted payment stablecoins and requirements for futures commission merchants to use qualified digital asset custodians.
- Digital Commodity Definition: Fungible assets on public, cryptographic blockchains with open-source code, excluding securities or stablecoins.
- Mature Blockchain Certification: Unlocks CFTC spot oversight after meeting decentralization thresholds.
- Custody Rules: Segregation, consent for blockchain services, and CFTC limits on staking.
- Trading Standards: Certification for secondary markets, joint agency rulemakings.
Industry Benefits and Potential Impacts
Chair Atkins argues this clarity will supercharge tokenization, accelerate settlements, and attract institutional capital. Spot crypto trading on regulated domestic venues reduces offshore risks, while harmonized rules enable portfolio margining and cross-market efficiency. For asset managers, CFTC core principles will apply broadly to spot markets, promising liquidity boosts and innovation in tokenized real-world assets.
The framework addresses custody gaps, with qualified custodians required and updated segregation calculations for digital collateral. Educational mandates and discretionary funds further support market maturity. Analysts project inflows as platforms register, potentially cementing U.S. leadership amid global competition.
Challenges and Skeptical Voices
Despite optimism, hurdles loom. Recent Senate postponements of CLARITY markups cite disagreements on stablecoin rewards, DeFi oversight, and lingering SEC-CFTC friction. Odds of 2026 passage hover at 50-60%, with delays possibly pushing to 2027. Industry groups welcome the push but caution on unresolved custody splits and decentralization tests, which could perpetuate disputes.
Political timing adds pressure: midterm dynamics, oversight demands, and the balance between speed and detail will shape outcomes. Without broad support, bills risk stalling in committee, prolonging enforcement-era uncertainties.
Looking Ahead: A Pivotal Year for Crypto
As Senate votes loom this week, the crypto market structure bill represents more than regulatory housekeeping—it’s a blueprint for America’s digital asset future. With SEC and CFTC sprinting toward coordination, bipartisan lawmakers advancing drafts, and Chair Atkins eyeing a Trump signature, passage could unlock trillions in tokenized value and position the U.S. as the undisputed crypto hub.
Stakeholders must engage constructively to resolve sticking points, ensuring the final law balances innovation with safeguards. The payoff? A mature, transparent market drawing global capital, where clarity supplants chaos. For investors, developers, and institutions, 2026 could mark crypto’s definitive coming-of-age—provided momentum holds.
