President Donald Trump has indicated that a long-debated crypto market structure bill could soon reach his desk, marking what could become one of the most significant regulatory overhauls in digital asset history.
The proposed legislation, identified as S. 3755/H.R. 3633, aims to clarify which federal agency oversees different segments of the crypto market while setting firm timelines for exchanges and stablecoin issuers.
Dividing Power Between SEC and CFTC
At the heart of the bill is a formal split between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Under the framework:
- The CFTC would gain primary authority over digital commodities such as Bitcoin and Ethereum.
- The SEC would retain jurisdiction over crypto assets classified as securities.
- Exchanges and brokers would receive a 180-day window to obtain provisional registration once the law is enacted.
The bill also requires joint SEC–CFTC rulemaking within 18 months to address complex areas such as hybrid transactions and margin frameworks.
Senate Hurdles and White House Deadlines
Although the House previously passed a version of the Digital Asset Market Clarity Act, progress in the Senate has been slower.
In late January, the Senate Agriculture Committee advanced related legislation by a narrow 12–11 vote. The Senate Banking Committee must now reconcile its draft with the Agriculture Committee’s version before a February 28 White House deadline tied to stablecoin policy guidance.
That timeline adds urgency to negotiations.
Industry Pushback and Stablecoin Focus
Some industry participants, including major exchanges, have criticized earlier drafts, arguing that they impose overly restrictive rules on decentralized finance protocols and stablecoin issuers.
Stablecoins remain a central part of the debate. Lawmakers are seeking to establish clear standards for issuance, reserves, and compliance to reduce systemic risk while supporting innovation.
Meanwhile, certain members of Congress have called for investigations into Trump-linked crypto ventures, including WLFI, adding political complexity to the legislative push.
Why This Matters for Markets
For years, regulatory uncertainty has weighed on US crypto markets. Clear jurisdiction between the SEC and CFTC could reduce enforcement ambiguity and encourage institutional participation.
At the same time, stricter compliance requirements may reshape how exchanges, token issuers, and DeFi protocols operate.
If passed, the bill would represent a decisive step toward a structured regulatory environment rather than the enforcement-driven approach that has defined recent years.
For investors and industry operators alike, the final shape of this legislation could define the next phase of US crypto market development.
