BIPARTISAN BILL TO GIVE CFTC AUTHORITY OVER EXCHANGES AND STABLECOINS

Last updated: June 19, 2025, 21:16 | Written by: Elizabeth Stark

The world of cryptocurrency is often described as the ""Wild West"" of finance, a space teeming with innovation but also fraught with regulatory uncertainty.For years, industry participants, legal experts, and even regulators themselves have called for clearer rules of the road. A bipartisan group of lawmakers in D.C. introduced an updated bill on April 28 to regulate cryptocurrency developers, dealers, exchanges, and stablecoin providers, bringing them under the regulatory control of the United States Commodity Futures Trading Commission (CFTC). The Digital Commodity Exchange Act of 2025 was re-introduced to CongressNow, a significant step towards that clarity is taking shape in Washington, D.C., with the introduction of a bipartisan bill aimed at granting the Commodity Futures Trading Commission (CFTC) more authority over digital asset exchanges and stablecoins.This proposed legislation, building upon previous drafts and discussions, seeks to resolve the jurisdictional ambiguities that have long plagued the crypto market, particularly the often-contentious relationship between the CFTC and the Securities and Exchange Commission (SEC). The CFTC gains authority over digital commodities, including those that have completed the decentralization process. The CFTC regulates spot markets, digital commodity exchanges, and post-sale trading. To formalize this split, the Act amends the Securities Exchange Act of 2025 and the Commodity Exchange Act. Registration of Digital CommodityImagine a future where crypto exchanges operate under well-defined guidelines, and stablecoins are backed by transparent and secure reserves – that's the vision this bill hopes to achieve.This article will delve into the key provisions of this landmark legislation, exploring its potential impact on the digital asset landscape and what it means for everyone from crypto developers to everyday investors. A bipartisan group of lawmakers including the leading Republican on the House Agriculture Committee has introduced a new bill to regulate developers, dealers, and exchanges working with digital commodities, including stablecoins and, ostensibly, Bitcoin.It is a comprehensive look into the future of crypto regulation in the US.

Understanding the Crypto Market Bill: The CLARITY Act of 2025

Formally known as the **CLARITY Act of 2025** (presumably, for now), this bill represents a culmination of efforts to establish a comprehensive regulatory framework for digital assets.Introduced by a bipartisan coalition of lawmakers, including key figures from the House Financial Services Committee and the House Agriculture Committee, the bill aims to provide much-needed clarity for businesses operating in the digital asset space. The bill arrives with bipartisan support, including three Democratic co-sponsors, and seeks to finally resolve the jurisdictional tug-of-war between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The New Bipartisan Crypto Bill Seeks to End SEC-CFTC Turf War. The 236-page bill is a successor toThe core goal of the CLARITY Act is to define clear boundaries between different types of digital assets and assign appropriate regulatory oversight.This framework is expected to foster innovation while protecting consumers and ensuring the integrity of the market.

Key Provisions and Their Impact

The CLARITY Act encompasses several key provisions designed to address specific areas of concern within the digital asset ecosystem. Bipartisan bill to give CFTC authority over exchanges and stablecoins Jesse Coghlan 20 A bipartisan group of lawmakers in D.C. introduced an updated bill on April 28 to regulate cryptocurrency developers, dealers, exchanges, and stablecoin providers, bringing them under the regulatory control of the United States Commodity FuturesLet's examine some of these provisions in more detail:

CFTC Authority Over Digital Commodities: The bill grants the CFTC exclusive jurisdiction over digital commodities, including Bitcoin and potentially other cryptocurrencies that have achieved a sufficient level of decentralization. Business, Economics, and Finance. GameStop Moderna Pfizer Johnson Johnson AstraZeneca Walgreens Best Buy Novavax SpaceX Tesla. CryptoThis means the CFTC will have the authority to regulate spot markets for these digital commodities, as well as digital commodity exchanges and post-sale trading activities.This is a significant shift, as it brings a large segment of the crypto market under the regulatory purview of a specific agency.
Registration of Digital Commodity Exchanges: Exchanges that offer spot trading in digital commodities will be required to register with the CFTC. Bipartisan bill to give CFTC authority over exchanges and stablecoins PANews ｜ The Digital Commodity Exchange Act would give the commodities regulator the authority to determine rules for cryptocurrency developers and exchanges offering spot trading.This registration process will likely involve meeting certain requirements related to financial stability, cybersecurity, and customer protection. The Digital Commodity Exchange Act would give the commodities regulator the authority to determine rules for cryptocurrency developersThe goal is to ensure that these exchanges operate in a transparent and responsible manner, mitigating risks for users.
Stablecoin Regulation: The bill addresses the growing concern around stablecoins by establishing a regulatory framework for payment stablecoins. On, several House committees jointly released a discussion draft of a bill to establish a regulatory framework for digital assets. Notably, this proposed Act would clarify the jurisdictional boundaries between the Commodity Futures Trading Commission (CFTC) and the Securities Exchange Commission (SEC) and grant the CFTC exclusive jurisdiction under the Commodity Exchange Act (CEAIt is intended to resolve the jurisdictional debate and bring a clear regulatory scope. [ Ma ] Analyst Breaks Down the Real Reason Why Bitcoin [ Ma ] Competitors want to kill Tether, most altcoins won t make it in 2025: Finance Redefined EthereumThis is a critical step, as stablecoins play a vital role in the crypto ecosystem, serving as a bridge between traditional finance and digital assets.The legislation aims to ensure that stablecoins are backed by adequate reserves and that issuers comply with anti-money laundering (AML) and know-your-customer (KYC) requirements.
Clarifying the SEC-CFTC Divide: A major objective of the CLARITY Act is to clarify the jurisdictional boundaries between the SEC and the CFTC. BTCUSD Bitcoin Bipartisan bill to give CFTC authority over exchanges and stablecoins The Digital Commodity Exchange Act would give the commodities regulator the authority to determine rules for cryptocurrency developers and exchanges offering spot trading.The bill amends both the Securities Exchange Act and the Commodity Exchange Act to formalize the split in regulatory responsibilities. A bipartisan group of lawmakers in D.C. introduced an updated bill on April 28 to regulate cryptocurrency developers, dealers, exchanges, and stablecoin providers, bringing them under the regulatory control of the United States Commodity Futures Trading Commission (CFTC).This is intended to prevent future disputes between the agencies and provide businesses with greater certainty about which regulatory regime they fall under.

Ending the SEC-CFTC Turf War

One of the most significant aspects of the CLARITY Act is its attempt to end the long-standing ""turf war"" between the SEC and the CFTC. 2 月，CFTC 主席 Rostin Behnam 在参议院关于数字资产的听证会上告诉立法者，由于监管不同，委员会无权执行加密领域。 Behnam 称加密领域本质上是一个不受监管的市场，并表示CFTC获得更多监管权力只会让我们看到背后的情况。For years, the two agencies have clashed over which one should have primary responsibility for regulating digital assets.This ambiguity has created confusion for businesses and hindered the development of the crypto market. Congress just introduced the Crypto Market Bill, the CLARITY Act of 2025, promising long-awaited regulatory clarity for digital assets. R Tamara de Silva provides a comprehensive analysis, breaking down key provisions and their impacts on crypto exchanges, stablecoins, and decentralized finance. Essential reading for stakeholders in the digital asset space, including legal, compliance, andThe bill seeks to resolve this issue by clearly defining the scope of each agency's authority.

Under the proposed legislation, the SEC would retain jurisdiction over digital assets that meet the definition of a security, such as tokens offered in initial coin offerings (ICOs) that promise future profits or dividends. [ad_1]A bipartisan group of lawmakers in D.C. introduced an updated bill on April 28 to regulate cryptocurrency developers, dealers, exchanges, and stablecoin providers, bringing them under the regulatory control of the United States Commodity FuturThe CFTC, on the other hand, would gain authority over digital commodities, which are typically defined as assets that are not securities and are used primarily for transactional purposes or as stores of value. A bipartisan group of lawmakers in Washington, D.C, introduced an updated bill on Thursday to regulate cryptocurrency developers, dealers, exchanges and stablecoin providers, bringing them underThis distinction, while not always clear-cut, aims to provide a more rational and predictable regulatory framework.

Examples of SEC and CFTC Jurisdiction

To illustrate the difference between SEC and CFTC jurisdiction, consider the following examples:

SEC Jurisdiction: A company launches a new cryptocurrency through an ICO, promising investors a share of future profits generated by the company's platform. [ Septem ] Bitcoin ETFs outperform Ether ETFs as BlackRock s IBIT leads peers Ethereum [ Septem ] Telegram Faces Deepfake Pornography Probe in South Korea CryptocurrencyIn this case, the token would likely be considered a security, falling under the SEC's regulatory purview.
CFTC Jurisdiction: Bitcoin, which is widely used as a digital store of value and a medium of exchange, would likely be classified as a digital commodity under the CLARITY Act. Today, Congresswoman Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee, unveiled payment stablecoin legislation agreed to by then Chair McHenry s and Ranking Member Waters staffs.This would place it under the CFTC's regulatory authority.

Impact on Crypto Exchanges

The CLARITY Act is poised to have a significant impact on crypto exchanges operating in the United States.Under the proposed legislation, exchanges that offer spot trading in digital commodities would be required to register with the CFTC and comply with its rules and regulations. A bipartisan group of lawmakers in D.C. introduced an updated bill on April 28 to regulate cryptocurrency developers, dealers, exchanges, and stablecoin providers, bringing them under the regulatory control of the United States Commodity Futures Trading Commission (CFTC). The Digital Commodity Exchange Act of 2025 (DCEA) was re-introduced to Congress by Republican Representatives Glenn ThompsonThis would entail meeting certain standards for financial stability, cybersecurity, and customer protection.It is expected that exchanges will need to invest in compliance infrastructure and expertise to meet these new requirements.

The increased regulatory oversight could also lead to greater transparency and accountability within the crypto exchange industry.This, in turn, could attract more institutional investors and mainstream users who have been hesitant to participate in the market due to concerns about security and regulatory uncertainty.Furthermore, the registration requirement is projected to level the playing field between established exchanges and newer platforms.

Benefits for Crypto Exchanges

While the new regulations may seem burdensome at first, they could ultimately benefit crypto exchanges in several ways:

Increased Legitimacy: Compliance with CFTC regulations can enhance an exchange's reputation and credibility, making it more attractive to investors and users.
Reduced Regulatory Risk: Clear regulatory guidelines reduce the risk of facing enforcement actions from the SEC or CFTC.
Access to Institutional Investors: Institutional investors are more likely to invest in exchanges that operate under a clear and robust regulatory framework.
Enhanced Customer Protection: Stronger security measures and customer protection policies can build trust and loyalty among users.

Regulation of Stablecoins

Stablecoins, which are cryptocurrencies designed to maintain a stable value relative to a reference asset such as the US dollar, have become increasingly important in the digital asset ecosystem.However, concerns have been raised about the reserves that back these stablecoins and the potential for them to be used for illicit activities.

The CLARITY Act seeks to address these concerns by establishing a regulatory framework for payment stablecoins.The bill will likely require stablecoin issuers to register with a regulatory agency, maintain adequate reserves to back their tokens, and comply with AML and KYC requirements.These measures are intended to ensure that stablecoins are safe, reliable, and not used for illegal purposes.

The Importance of Stablecoin Regulation

Regulating stablecoins is crucial for several reasons:

Protecting Consumers: Stablecoin regulation can help protect consumers from losses if a stablecoin issuer fails to maintain adequate reserves or becomes insolvent.
Preventing Financial Instability: Stablecoins are increasingly used in decentralized finance (DeFi) applications, and their stability is critical for the smooth functioning of these systems.
Combating Money Laundering: AML and KYC requirements can help prevent stablecoins from being used for money laundering and other illicit activities.
Fostering Innovation: A clear regulatory framework can provide stablecoin issuers with greater certainty, encouraging innovation and investment in the stablecoin market.

Impact on Decentralized Finance (DeFi)

The CLARITY Act's potential impact on the decentralized finance (DeFi) sector is complex and uncertain.While the bill primarily focuses on exchanges and stablecoins, its provisions could indirectly affect DeFi protocols and applications.For example, if the CFTC gains authority over digital commodities, it could potentially regulate certain DeFi platforms that facilitate the trading of these assets.

The application of securities laws to DeFi tokens is another area of concern.If a DeFi token is deemed to be a security, it would fall under the SEC's regulatory purview.This could create challenges for DeFi platforms that operate in a decentralized and permissionless manner.Some argue that applying traditional securities laws to DeFi could stifle innovation and hinder the growth of the sector.

Navigating the Regulatory Landscape for DeFi

DeFi projects should carefully consider the regulatory implications of the CLARITY Act and other emerging regulations.It is important to seek legal advice and develop a compliance strategy that aligns with the evolving regulatory landscape.

What Does This Mean for Bitcoin?

Bitcoin (BTC) could be one of the biggest beneficiaries of the CLARITY Act.The bill’s provision to grant the CFTC authority over digital commodities strongly suggests that Bitcoin would fall under the CFTC’s regulatory purview.This clarification could attract more institutional investment into Bitcoin, which has been hesitant due to regulatory uncertainty.

Moreover, a recognized and established regulatory framework could help Bitcoin shake off some of the negative associations related to illegal activities, fostering wider mainstream adoption and improved investor sentiment.This also means that Bitcoin exchanges could become more regulated, leading to improved security and potentially increased confidence among users.This will be a landmark moment in the evolution of Bitcoin.

The Digital Commodity Exchange Act of 2025 (DCEA)

The **Digital Commodity Exchange Act of 2025 (DCEA)** is not just a piece of legislation; it's a comprehensive framework designed to give the CFTC the power to set the rules for cryptocurrency developers and exchanges that offer spot trading.This is a transformative step that promises to bring greater clarity and security to the digital asset landscape.

By establishing clear guidelines and regulatory oversight, the DCEA aims to foster a more stable and trustworthy environment for digital commodities.This regulatory clarity will help exchanges adhere to best practices and ensure that consumers are protected.In essence, the DCEA is set to reshape the future of digital commodity trading.

Conclusion: A New Era for Crypto Regulation

The bipartisan bill to give the CFTC authority over exchanges and stablecoins represents a pivotal moment in the evolution of crypto regulation in the United States.By clarifying the jurisdictional boundaries between the SEC and the CFTC, establishing a regulatory framework for stablecoins, and bringing digital commodity exchanges under the oversight of the CFTC, the bill promises to bring much-needed clarity and stability to the digital asset market.While the new regulations may pose challenges for some businesses, they could also create new opportunities and attract more institutional investment.Ultimately, the goal is to strike a balance between fostering innovation and protecting consumers, ensuring that the digital asset ecosystem can thrive in a safe and responsible manner.As this legislation moves forward, stakeholders across the crypto industry should actively engage in the process to ensure that the final outcome reflects the needs of all participants.

Key Takeaways:

The bill aims to grant the CFTC more authority over digital asset exchanges and stablecoins.
It seeks to resolve jurisdictional ambiguities between the CFTC and the SEC.
Stablecoins will face a more comprehensive regulatory regime.
The bill strives to foster innovation while protecting consumers.
Ultimately, it seeks to establish a clear and stable regulatory framework for the digital asset market.

Stay informed, engage with your representatives, and prepare your business for the evolving regulatory landscape of cryptocurrency.The future of digital assets in the US may depend on it.