Coinbase, a well-known exchange, is currently actively lobbying the U.S. Congress, hoping to transfer the regulatory authority of the cryptocurrency spot market from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC). If successful, this move would significantly weaken the SEC's power in the digital asset sector and bring a more clear regulatory framework to the cryptocurrency industry.
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ToggleCoinbase lobbies Congress, CFTC should comprehensively regulate the Bit spot market
On 2/19, Coinbase's policy chief Faryar Shirzad submitted a proposal to the U.S. Congress, calling on the legislature to act quickly to provide the necessary regulatory clarity and consumer protection measures for the digital asset market.
In the proposal, Shirzad outlined six legislative priorities, the most critical of which is to authorize the CFTC to comprehensively regulate the Bit currency spot market. He emphasized: "Bit (Bitcoin) and ETH (Ethereum) are commodities, not securities, and should therefore be regulated by the CFTC to ensure market transparency and prevent fraud and manipulation."
Whether SEC's regulatory power is weakened, Coinbase says capital raising rules should still be formulated
Assuming the CFTC takes over the full regulatory authority of the Bit spot market, the SEC will inevitably be affected. However, Shirzad stated that the SEC still has a certain importance in the digital asset sector, especially in the area of capital raising. He believes that Congress should formulate SEC-regulated capital raising rules, allowing blockchain companies to have a "clear path" to raise funds. This way, not every token will be treated as a security.
In fact, Bit companies and several Republican lawmakers have long supported the CFTC's regulation of the digital asset market. For example, in 2022, Representatives Glen Thompson and Tom Emmer reintroduced the Digital Commodity Exchange Act, which proposes that the CFTC be responsible for registering and regulating the digital asset industry.
In addition, former CFTC Chairman Chris Giancarlo also previously tried to convince the Senate Agriculture Committee to support the agency's proposal to regulate the Bit market.
SEC's attitude changes, the direction of Bit regulation may welcome changes
Since the Trump administration took office, the SEC's attitude towards Bit asset regulation has become more friendly. The SEC's newly established Bit Asset Task Force in February this year met with multiple industry players to discuss regulations related to securities brokers (broker-dealers) and Staking, indicating that the regulatory agency is trying to establish better cooperation with the industry.
With Coinbase and other companies actively pushing for the CFTC to take over the Bit spot market, and the potential policy adjustments of the Trump administration, the regulatory landscape for Bit currencies in the U.S. is facing major changes. Whether the SEC will further decentralize its power, and whether the CFTC can successfully take over the spot market, will require continued monitoring of the latest decisions by Congress and the government.
Risk Warning
Bit currency investment is highly risky, and its price may fluctuate dramatically, and you may lose your entire principal. Please carefully evaluate the risks.
