US Crypto Bill Fails..."SEC·CFTC Regulatory Work is Underway"

▲ Cryptocurrency bill, U.S. Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC)/AI generated image

Although the U.S. cryptocurrency market structure bill stalled with a 49-50 vote, an analysis suggests that regulatory work by the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) is already underway.

Dan Gambardello, host of the cryptocurrency-focused YouTube channel Crypto Capital Venture, highlighted the failure of the U.S. Senate's procedural vote on the U.S. cryptocurrency market structure bill in a video uploaded on September 16 (local time). The bill failed to secure the 60 votes needed for deliberation, with 49 votes in favor and 50 against. Gambardello emphasized that regulatory work by the two agencies is already underway, separate from congressional legislation, stating, “There is a backup plan: the SEC and CFTC.”

The CFTC had previously stated its position to build a regulatory framework for the cryptocurrency market using its existing authority if congressional legislation is delayed. CFTC Chairman Michael S. Selig announced on August 20 that if the U.S. cryptocurrency market structure bill continues to be delayed, they would proceed with rulemaking using their existing authority. Options under consideration include designating cryptocurrency exchanges as a new type of CFTC market, supervising leveraged trading, and creating pathways for on-chain developers to legally operate in the U.S.

The SEC also proposed revisions to cryptocurrency fundraising rules on August 18. Startups can raise up to $5 million over four years, and up to $75 million over 12 months if they meet separate disclosure requirements. A safe harbor, which deems certain activities not to be investment contracts if specific conditions are met, was also included. Gambardello explained that interpretive work related to staking, mining, and airdrops, as well as follow-up regulations for the stablecoin regulation bill GENIUS, are already progressing through separate channels.

However, there are limitations to executive branch regulation. Gambardello stated, “Agencies can only operate within the authority already granted by Congress.” He pointed out that new rules could be contested in court, and a future administration might reverse policy directions. He assessed that the core significance of the U.S. cryptocurrency market structure bill lay in fixing the regulatory framework through law. SEC Commissioner Paul Atkins also stated on August 18 that congressional legislation is essential for creating rules that will endure long-term.

Gambardello did not believe that this vote would change the macroeconomic investment logic of the cryptocurrency market. He judged that manufacturing activity, liquidity flows, and capital moving into risky assets are more critical variables. He emphasized, “Whether regulation is good or bad, regulation itself does not create a reason to hold tokens,” adding that now that the uncertainty of the U.S. cryptocurrency market structure bill has ended, follow-up regulatory work by the SEC and CFTC should be observed.

[Article Summary]

-The U.S. cryptocurrency market structure bill failed to secure the necessary 60 votes in the Senate procedural vote, with a count of 49 to 50.

-The CFTC is preparing to establish cryptocurrency market rules using its existing authority, and the SEC has also proposed regulations including an exemption for fundraising up to $75 million.

-Gambardello pointed out that despite the failure of congressional legislation, the regulatory work of the SEC and CFTC is already underway, but it has limitations in terms of durability compared to laws.

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