CFTC and SEC regulation unified! Boozman introduces bipartisan bill to end crypto chaos

The CEO of the Blockchain Association, Summer Mersinger, praised Senators John Boozman (Republican-Arkansas) and Cory Booker (Democrat-New Jersey) for promoting bipartisan cooperation. The key provisions of the draft include establishing a regulatory framework for digital commodities in spot markets with the CFTC and mandating collaboration between the SEC and CFTC in cross-agency rulemaking.

Mersinger Praises New Draft as a Regulatory Breakthrough

(Source: Blockchain Association)

According to a post on X on November 11, Mersinger believes that the new discussion draft released by the Senate Agriculture Committee (SAG) “marks an important step forward in establishing clear, commonsense rules for the digital asset ecosystem.” Her comments carry particular weight given her extensive experience at the CFTC, where she served for many years and gained deep insight into the agency’s operations and regulatory philosophy.

Mersinger also commended SAG Chairman John Boozman (Republican-Arkansas) and Senator Cory Booker (Democrat-New Jersey), thanking them for strengthening bipartisan momentum after the House approved the CLARITY Act in July. The CLARITY Act is a crypto regulation bill passed by the House that provides an initial regulatory framework for digital assets but requires Senate legislation to become law. The bipartisan cooperation between Boozman and Booker indicates that crypto regulation has transcended partisan politics and become a consensus issue.

“We look forward to thoroughly reviewing the draft and providing our input during the process,” Mersinger stated. “Ongoing collaboration between the Senate Agriculture and Banking Committees is crucial to developing a comprehensive framework that will ensure the United States maintains its leadership in the global cryptocurrency and digital asset space.” This statement reveals the complexity of the legislative process: the Agriculture Committee handles CFTC-related legislation, while the Banking Committee oversees SEC-related laws, requiring coordination to avoid regulatory gaps or overlaps.

Boozman and Booker Drive Bipartisan Blockchain Policy

Mersinger’s comments came the day after Boozman and Booker announced a new cryptocurrency discussion draft on Sunday, November 10. The draft outlines several key provisions related to the blockchain industry that will reshape the U.S. crypto regulatory landscape. The primary provision is establishing a regulatory mechanism for digital commodities in spot markets with the CFTC, granting the CFTC explicit legal authority to oversee cryptocurrency spot trading, beyond its current jurisdiction over derivatives.

Additionally, the legislation on crypto market structure will require the SEC and CFTC to “collaborate on rulemaking and enforcement where necessary.” This is one of the most revolutionary aspects of the draft, as it directly addresses the root of current regulatory chaos: long-standing gray areas and conflicts between the SEC and CFTC over digital asset oversight, leaving companies and investors uncertain about which agency’s rules to follow. Mandatory coordination means these agencies must establish formal communication channels, coordinate enforcement actions, and avoid issuing contradictory guidance.

In a statement, Boozman said, “The CFTC plays a vital role in maintaining the integrity and stability of our financial and derivatives markets. As Congress works to expand the agency’s authority to regulate digital assets traded as commodities, we must ensure it has the necessary tools, personnel, and resources to fulfill this new mission alongside its existing responsibilities.” This indicates that the expansion of the CFTC’s authority is not merely nominal but will be supported with actual budget and staffing resources.

Three Key Provisions of the Draft

CFTC Spot Market Oversight: Explicitly authorizes the CFTC to regulate digital commodities in spot markets, not just derivatives.

Mandatory Cross-Agency Coordination: SEC and CFTC must coordinate on rulemaking and enforcement to prevent conflicts.

Resource Support: Increase CFTC’s budget and staffing to ensure capacity to handle expanded regulatory duties.

This bipartisan political momentum is rare. In the highly polarized current U.S. political environment, the fact that Republican Boozman and Democrat Booker can jointly promote legislation shows that crypto regulation has become a bipartisan consensus issue. This political climate offers an optimistic outlook for the draft’s eventual passage into law.

Why Is CFTC-SEC Coordination Urgent?

The conflicts between the SEC and CFTC over crypto regulation have persisted for years, posing a major obstacle to the development of the U.S. digital asset industry. The SEC considers most cryptocurrencies as securities subject to its jurisdiction, while the CFTC views Bitcoin, Ethereum, and other mainstream assets as commodities within its scope. This regulatory vacuum and overlap create uncertainty for companies, many of which have left the U.S. or operate in gray areas.

The need for mandatory coordination has been highlighted in multiple cases. The Ripple lawsuit with the SEC has lasted five years, with the court ultimately ruling that XRP is a security in some cases and a commodity in others. While this partial victory benefits Ripple, it does not resolve the fundamental regulatory uncertainty. Similar cases include Coinbase’s ongoing litigation with the SEC and regulatory pressures on Uniswap. These cases have cost hundreds of millions of dollars in legal fees but still lack clear regulatory guidance.

The draft proposed by Boozman and Booker aims to fundamentally address this issue through legislation. By clarifying the CFTC’s authority over spot markets and mandating cooperation between the agencies, the draft provides a predictable regulatory environment for digital assets. Companies will know which agency to register with, what rules to follow, and how to stay compliant. Such certainty is essential for the growth of capital-intensive industries.

From a global perspective, coordination between the CFTC and SEC is crucial for maintaining U.S. leadership in crypto. The European Union has already enacted the MiCA (Markets in Crypto-Assets) regulation, providing a comprehensive framework for digital assets. Singapore, Hong Kong, the UAE, and other jurisdictions are actively establishing crypto-friendly regulations to attract businesses and capital. Continued regulatory chaos in the U.S. could result in losing leadership in this strategic industry.

Potential Practical Impact on the Crypto Market

If this market structure draft becomes law, it could have profound effects on the crypto industry. First, regulatory certainty will attract more institutional capital. Many traditional financial institutions have been hesitant to allocate large amounts to crypto due to regulatory ambiguity; clear rules will eliminate this concern. Second, compliance costs will decrease. Companies will no longer need to navigate conflicting SEC and CFTC requirements and can focus on a clear regulatory framework.

Third, innovation will be unleashed. Currently, many crypto innovations are stifled by regulatory fears; clear rules will enable companies to innovate boldly. Fourth, U.S.-based crypto companies that have moved offshore may consider returning. Over the past few years, many U.S. crypto projects have registered and operated abroad; improved domestic regulation could incentivize them to re-enter the U.S. market.