The Senate will review the crypto bill next week, CFTC's regulatory authority expanded but short-staffed

The construction of the US cryptocurrency regulatory framework has entered a critical stage. The Senate Agriculture Committee has confirmed that it will hold a review of the latest Digital Commodity Intermediary Act next Tuesday (January 28), which is seen as an important milestone in advancing federal-level cryptocurrency regulation. However, this bill still lacks clear bipartisan consensus in Congress, and the CFTC responsible for specific regulation also faces dual challenges of manpower and budget constraints.

Core Content of the Bill and Regulatory Framework

According to the news, the bill was released by John Boozman, Chairman of the Senate Agriculture Committee. Its core goal is to establish a unified CFTC-based regulatory framework for the US cryptocurrency market. Specifically, the key points of the bill include:

• Including digital asset trading platforms, custodians, and related intermediary services under CFTC regulation
• Entities recognized as “digital commodity intermediaries” must register with the CFTC
• Complying with a series of compliance and risk management rules

This means that the US cryptocurrency trading ecosystem will have a clearer compliance path at the federal level for the first time. Compared to the previous “fragmented” regulatory state, this framework is expected to provide clear guidance for trading platforms, custodians, and others.

CFTC’s Preparations and Practical Challenges

It is worth noting that the CFTC seems to be preparing for this expansion of authority. According to related information, the new CFTC Chairman Mike Selig launched the “Future Proof” plan on January 20, aiming to modernize the agency’s approach to digital asset regulation. Meanwhile, on January 21, the CFTC appointed veteran crypto lawyer Michael Passalacqua as senior advisor, strengthening the agency’s expertise in the crypto field.

However, there is a significant gap between preparation and current conditions. According to the news, some internal regulators within the CFTC have warned that expanding regulatory responsibilities without corresponding resource expansion could actually increase systemic risks. Bloomberg further pointed out that the CFTC’s budget is only a small fraction of the SEC’s, and manpower and enforcement resources have been under long-term strain. This raises questions about whether the CFTC can effectively enforce the law even if it passes.

Political Support and Congressional Divisions

On the political front, the support from the Trump administration is clear. President Trump expressed hope to sign the relevant bill as soon as possible at the World Economic Forum in Davos, and Patrick Witt, Executive Director of the Digital Asset Advisory Committee, stated outright that such legislation “is only a matter of time, not whether it will happen.”

However, this optimistic attitude is not universally shared. The Senate Banking Committee has chosen to slow down, delaying its legislative work on the structure of the cryptocurrency market. This “one accelerates, one brakes” situation makes the bill’s prospects in Congress more uncertain and reflects ongoing significant disagreements within US politics regarding digital asset regulation.

Industry Voices and Practical Risks

Industry responses to the bill are also mixed. Cody Carbone, CEO of the Digital Chamber, believes that the latest draft from the Agriculture Committee indicates that Congress still intends to implement a cryptocurrency regulation framework by 2026. However, Seth Hallem, CEO of the crypto security firm Certora, raised deeper concerns: traditional regulatory tools are designed for centralized finance and are not fully suitable for on-chain markets, which could lead to new frictions in practical enforcement.

Summary

The construction of the US cryptocurrency regulation framework is indeed accelerating, and next week’s Senate review will be a key milestone. However, the process faces three major challenges: first, policy disagreements within Congress; second, resource constraints at the CFTC; and third, the suitability of traditional regulatory tools for on-chain markets.

Based on current information, 2026 is likely to be a pivotal year for US crypto regulation. But whether the bill can pass smoothly, whether the CFTC can secure sufficient resources, and whether the regulatory framework can be effectively implemented—all remain to be seen. The outcome of next Tuesday’s Agriculture Committee review will provide important guidance for subsequent developments.