US Crypto Bill Targets SEC-CFTC Power Struggle with Bold DeFi Rules

2025-09-09

The U.S. Senate has introduced a draft crypto market structure bill that seeks to resolve the long-standing regulatory battle between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

By establishing clear oversight boundaries and forming a joint advisory committee, the bill aims to unify the fragmented regulatory landscape surrounding digital assets.

Beyond redefining agency roles, the legislation introduces groundbreaking provisions to protect decentralized finance (DeFi) developers, exempt certain activities from securities laws, and provide clear rules for crypto exchanges and stablecoin issuers.

If passed, it could be one of the most transformative steps toward balancing innovation with investor protection in the U.S. crypto market.

SEC-CFTC Roles Clarified

A major highlight of the bill is the delineation of power between the SEC and CFTC. The CFTC would gain exclusive jurisdiction over most crypto asset transactions and exchanges, treating them as digital commodities.

The SEC would continue to oversee digital assets that function like traditional securities, such as those granting equity, dividends, or debt-related rights.

This division is designed to end the turf war between the two regulators, providing businesses and investors with much-needed clarity on compliance requirements.

DeFi and Developer Protections

The bill includes strong protections for DeFi developers. It specifies that builders of decentralized protocols cannot be held liable simply for writing or deploying code unless there is fraudulent intent.

This safeguard is seen as a victory for the Web3 community, ensuring that innovation in decentralized finance can thrive without the looming threat of regulatory overreach.

Regulatory Coordination

To ensure consistency, the bill proposes the creation of a joint SEC-CFTC advisory committee. This body would coordinate standards, address overlapping concerns, and streamline compliance frameworks.

The committee’s role is to reduce regulatory inefficiencies and establish a unified approach to overseeing digital assets, which has been one of the industry’s biggest pain points.

Asset Type-Specific Rules

The draft bill introduces clear rules for different types of digital assets and activities:

NFTs are excluded from securities classification.
Payment stablecoins must be issued only by federally or state-regulated depository institutions.
DePIN activities, certain staking services, and specific airdrops are exempt from securities laws.
Existing tokens are shielded from lawsuits unless fraud is involved, curbing regulatory overreach.

These provisions bring long-awaited clarity to areas that have been operating in legal gray zones.

Final Thoughts

The U.S. crypto market structure bill represents a landmark attempt to settle regulatory uncertainty and create a balanced framework for digital assets.

By clarifying SEC and CFTC jurisdictions, protecting DeFi innovation, and carving out exemptions for NFTs and other activities, the legislation could pave the way for stronger investor confidence and industry growth.

If passed, the bill may become a turning point in how the U.S. embraces blockchain and Web3 technologies, striking a balance between oversight and innovation.

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FAQs

What does the new U.S. crypto bill propose?

It proposes giving the CFTC primary authority over most crypto assets, limiting the SEC’s jurisdiction to securities-like tokens, and creating a joint SEC-CFTC committee for oversight.

How does the bill impact DeFi developers?

The bill provides explicit protections, ensuring DeFi developers cannot be held legally liable for creating decentralized tools unless fraud is involved.