The long-standing tension between Washington and the crypto industry is starting to ease.
Recently, SEC Chairman Paul Atkins confirmed that the Digital Asset Market Clarity Act of 2025 is ready to be presented to the US President.
More importantly, he revealed that the SEC and the CFTC will no longer fight over control, but instead work together to align their rules.
Why hasn’t the crypto market responded?
However, this comes at a time when crypto prices are under pressure.
According to data from CoinMarketCap, the total market value is fallen to $3.08 trillion, at the time of writing, down 1.92% in the past 24 hours. However, this decline is mainly due to Donald Trump’s tariff shock.
This sudden shift in global economies raised fears of tighter global liquidity, driving investors away from riskier assets like Bitcoin [BTC] and altcoins.
The fight is over
That said, crypto projects were stuck between the SEC and the CFTC for years because they weren’t sure which rules applied to them. However, this new bill is different because it clearly divides responsibility.
Once passed, the CFTC would oversee digital commodities, such as Bitcoin and other decentralized assets. Meanwhile, the SEC would regulate investment-style tokens, especially during the early stages of fundraising.
Moreover, the bill also aims to introduce a key idea called the ‘expiry clause’.
Once a blockchain network becomes decentralized and stable enough, the token can disappear from SEC oversight and fall under the CFTC instead.
This could end the endless cycle of enforcement actions that have hurt crypto innovation in the US
More than trade
Needless to say, this bill is not just about crypto exchanges. It also lays the foundation for tokenizing real-world assets.
With clear legal rules, things like bonds, funds and stablecoins can be issued and traded on blockchains. This makes it easier for traditional financial companies to move within the chain.
In response to comments from Atkins, an X user said,
“If the market structure is finally clarified, it will be a major unlocker. Clear rules don’t slow down innovation, they allow real infrastructure to scale up.”
Echoing similar sentiments, another X user added,
“Things are about to go parabolic.”
What has changed?
Under former SEC Chairman Gary Gensler, the crypto industry has often faced a regulatory tightrope. Now that President Trump is back in power, however, the tone in Washington has changed.
While Gensler’s departure has clearly opened the door to greater cooperation, the path to full regulatory clarity remains uneven.
If Bitwise CEO Hunter Horsley recently noted that while progress is being made, significant gaps in clarity remain.
But regardless of what lies ahead, this reform has been years in the making and now appears to be finally within reach.
Ergo, one X user responded best echo Atkins’ comments when he said:
“This is enormous clarity that has been missing for years.”
Final thoughts
- Regulatory alignment between the SEC and the CFTC ends years of legal uncertainty and enforcement policy.
- If lawmakers close the remaining gaps, 2026 could mark the end of crypto’s regulatory winter and the beginning of institutional spring.