In a major development, the US Securities and Exchange Commission has filed a joint stipulation with defendant Gemini Trust Company, LLC to terminate its long-running civil enforcement action with prejudice, effectively ending the three-year legal battle over the Gemini Earn crypto lending program.

SEC Vs Gemini

In January 2023, the SEC instituted one of the most controversial crypto-related lawsuits against Gemini Trust Company and its partner, Genesis Global Capital LLC, accusing both parties of illegally offering and selling unregistered securities through the Gemini Earn lending program, a financial product that operated between 2021 and 2022, which allowed customers to lend crypto for interest at 7.4% per annum. 

Following the FTX crash in 2022, Genesis, which had a significant financial exposure to the now-defunct crypto exchange, halted withdrawals on the Gemini Earn Program, effectively locking up $940 million in investor assets. Since then, a series of events has unfolded, including Genesis entering bankruptcy proceedings, and through that process, all Earn investors ultimately recovered 100 percent of their crypto assets in kind. In addition, Gemini has settled related matters with state and federal regulators, paying over $50 million in civil fines. 

In the joint stipulation filed this week, the SEC noted that its decision to seek dismissal “in the exercise of its discretion” took into account the full investor recovery and those regulatory settlements. The dismissal is with prejudice, preventing the SEC from re-filing the same claims, and represents the formal end of one of the most high-profile enforcement actions in the US crypto industry.

US Crypto Regulatory Turnaround

The dismissal of the Gemini case comes amid a broader recalibration of the US crypto regulatory approach under the Donald Trump administration. Several high-profile SEC actions against major platforms, involving Coinbase, Kraken, and Binance, have been dropped or paused, reflecting a shift from a forceful regulatory approach seen under the former chairman, Gary Gensler. 

At the same time, Congress and the White House continue to pursue pro-crypto legislative and policy initiatives. In July 2025, US President Donald Trump signed the GENIUS Act into law, a landmark bill establishing a comprehensive federal framework for stablecoins, aimed at boosting consumer protection and supporting broader adoption of digital assets.

Alongside the GENIUS Act, the highly anticipated Clarity Act, passed by the US House, aims to delineate regulatory responsibilities between agencies like the SEC and the Commodity Futures Trading Commission (CFTC) based on how digital assets function. The US Senate Agriculture Committee is set to observe a markup session of the bill on January 27, indicating steady progress despite recent concerning events, including public outrage by Coinbase founder Brian Armstrong and the Banking Committee’s continued postponement of its own hearing session.

The XRP Ledger has entered a new phase of innovation as Ripple integrates to bring together two of the most powerful technology trends shaping the global economy. Long known for its speed, low transaction costs, and enterprise-grade reliability, the Ledger is now expanding beyond payments to data-driven and automated financial applications. By merging AI with decentralized settlement, Ripple is positioning the Ledger to support smarter workflows and more efficient liquidity management.

How Ripple Is Embedding Intelligence Into On-Chain Systems

An analyst known as SMQKE on X has shared a case study of an AI implementation in the cross-border payment, in which Ripple has successfully combined blockchain technology and artificial intelligence to enhance the efficiency, speed, and cost-effectiveness of global transactions.  As a leading provider of real-time cross-border payment solutions, Ripple leverages the XRP Ledger, a decentralized blockchain that enables real-time cross-border settlement. 

Related Reading: Surge In XRP Transactions: 1.45 Million Daily Users Could Signal Price Rally Ahead, Says Expert

What sets this integration apart is the use of AI to optimize transaction flows and routing decisions in real time. Ripple AI-powered systems continuously process large volumes of payment data in real time, allowing financial institutions to make dynamic decisions on the most effective payment paths. 

BlackRock is now using Ripple’s RLUSD as collateral, which is extremely bullish for XRP. JackTheRippler revealed that the altcoin is being positioned as the future infrastructure, which is being built with the potential to hit over $10,000 per coin. With the REAL token launching on January 26th, trillions in global capital could flood into the XRP Ledger. According to JackTheRippler, some projections suggest up to $800 billion could flow into the REAL token on XRP Ledger, potentially sparking a powerful supply shock.

Why The Comeback Feels Different This Time

The rise of the phoenix XRP is here. Crypto analyst Xfinancebull highlighted that Caroline Pham isn’t just another name in crypto. Pham played a role in pushing utility regulation into the Commodity Futures Trading Commission (CFTC), helping shift policy toward real-world use cases. Currently, she is at MoonPlay and posting about the phoenix on X.

Related Reading: How Donald Trump’s Latest Crypto Move Will Boost Demand For XRP

Years ago, Brad Garlinghouse drew that same phoenix, and it became one of the biggest pieces of XRP lore. While the market chased narratives, Ripple has been building institutional-grade crypto products for years. Meanwhile, the token, RLUSD, and the XRP Ledger are now live operating, and recognized among the most compliant blockchain assets in the crypto world.

This is the same asset that survived the SEC’s biggest regulatory battles in crypto history, and is now on the other side with legal clarity, growing integration, and increasing relevance to government infrastructure in its favor. Xfinancebull concluded that Caroline has helped clear the regulatory path, Brad and Ripple built what actually runs on that path, and they have been aligning all along, which is how the real adoption happens.

This week’s regulatory developments show a familiar reality in Washington: there is broad agreement that crypto needs rules, but little consensus on how those rules should be written or who should take the lead.

That tension was on full display as Senate Judiciary leaders Chuck Grassley and Dick Durbin raised concerns over a provision in Senate Banking Chair Tim Scott’s crypto market structure bill.

Senate Judiciary leaders oppose blockchain developer protections in crypto bill, warning exemptions modeled on Lummis-Wyden BRCA could block money laundering prosecutions.#Senate #CryptoBill #Developershttps://t.co/onqKSmbDQ2

— Cryptonews.com (@cryptonews) January 19, 2026

The language would exempt certain blockchain software developers from financial licensing requirements, a move lawmakers warned could weaken law enforcement’s ability to pursue money laundering and other illicit financial activity.

In a private letter first reported by Politico, Grassley and Durbin argued that the provision falls squarely under the Judiciary Committee’s jurisdiction and noted that their panel was not consulted before the markup was scheduled and later postponed.

The section closely mirrors the Blockchain Regulatory Certainty Act, a bipartisan proposal led by Senators Cynthia Lummis and Ron Wyden, but its inclusion has now become another flashpoint in an already fragile legislative process.

Market Structure Bill Slips Further Down the Agenda

Momentum behind the broader market structure bill continues to slow. According to reports, the Senate Banking Committee has again delayed work on the legislation, pushing consideration to late February or March. Instead, lawmakers are shifting focus to housing legislation following President Donald Trump’s renewed push on affordability.

Crypto market structure bill – Clarity Act – has been further delayed by the US Senate Banking Committee until late February or March.#CryptoMarketStructureBill #ClarityAct #CryptoRegulationhttps://t.co/sfk07tyygY

— Cryptonews.com (@cryptonews) January 22, 2026

The delay reinforces a growing concern within the crypto industry: despite years of debate, market structure reform remains vulnerable to political reprioritization. What was once positioned as urgent now risks being sidelined by competing legislative priorities.

Partisan Cracks Begin to Show

While the Banking Committee hesitates, the Senate Agriculture Committee is moving ahead, even without Democratic support. Chair John Boozman has scheduled a markup for January 27, acknowledging that “differences remain on fundamental policy issues” but signaling a willingness to proceed regardless.

Senate Agriculture Committee advances crypto bill for January 27 markup without Democratic support as Banking delays CLARITY Act over stablecoin disputes.#ClarityAct #Stablecoinhttps://t.co/Wjz1vpYh5d

— Cryptonews.com (@cryptonews) January 22, 2026

If passed, the move would mark a shift away from bipartisan consensus toward a more partisan approach, raising questions about the long-term durability of any resulting framework in a divided Congress.

Regulators Step In as Lawmakers Stall

As Congress struggles, regulators are increasingly filling the gap. Newly appointed CFTC Chair Michael Selig this week declared the start of a “golden age” for U.S. financial markets, launching a “Future-Proof” initiative intended to update decades-old rules to reflect crypto, blockchain, and artificial intelligence.

@CFTC Chair @MichaelSelig launches "Future-Proof" initiative to modernize derivatives rules, calling it America’s “GOLDEN AGE” for markets. #CFTC #MichaelSelig https://t.co/LMwHJ6NJLi

— Cryptonews.com (@cryptonews) January 20, 2026

At the White House, Digital Asset Advisor Patrick Witt added pressure from another angle, urging swift passage of a market structure bill. Pushing back against claims that “no bill is better than a bad bill,” Witt warned that failure to act now could invite far more punitive legislation under a future Democratic Congress, particularly in the aftermath of a market crisis.

Enforcement Pulls Back—Coordination Moves Forward

Meanwhile, enforcement trends continue to shift. A Cornerstone Research report found that SEC crypto enforcement actions fell 60% in 2025 following Paul Atkins’ appointment as chair, indicating a move away from regulation by enforcement and toward a more targeted focus on fraud.

The SEC opened just 13 crypto enforcement cases in 2025, down 60% from 2024, with most new actions under Chair Paul Atkins focused on fraud.#SEC #CryptoEnforcement https://t.co/YI5S1uVisH

— Cryptonews.com (@cryptonews) January 23, 2026

That recalibration was reinforced this week as Atkins and Selig announced a joint event aimed at regulatory harmonization between the SEC and CFTC, a symbolic but meaningful step toward reducing the jurisdictional confusion that has long plagued U.S. crypto markets.

The Bigger Picture

Taken together, this week’s developments point to a clear pattern: legislative paralysis is pushing more responsibility onto regulators. Whether that results in clarity or further fragmentation will depend on whether coordination can replace congressional gridlock—and whether lawmakers can still reclaim leadership before agencies set the rules by default.

The post Weekly Crypto Regulation Roundup: Market Structure Stalls as Power Shifts From Congress to Regulators appeared first on Cryptonews.

SEC Chairman Paul Atkins and CFTC Chairman Michael Selig will hold a joint event on January 27 to discuss regulatory harmonization and efforts to make the United States the global crypto capital.

The two regulators issued a joint statement announcing the event will take place at CFTC headquarters from 10 a.m. to 11 a.m. ET, marking another step in their ongoing coordination efforts.

“For too long, market participants have been forced to navigate regulatory boundaries that are unclear in application and misaligned in design, based solely on legacy jurisdictional silos,” the chairmen said in their statement.

“This event will build on our broader harmonization efforts to ensure that innovation takes root on American soil, under American law, and in service of American investors, consumers, and economic leadership.“

I'm looking forward to joining @ChairmanSelig next week at our @SECgov and @CFTC joint event to discuss harmonization between our two agencies.

Together we will discuss our efforts to deliver on President Trump’s promise to make the US the crypto capital of the world.

Join us! https://t.co/qgJwmiHYus

— Paul Atkins (@SECPaulSAtkins) January 22, 2026

Regulators Build on September’s Historic Turf War Resolution

The upcoming event continues momentum from a September 29 roundtable where both agencies publicly declared an end to their jurisdictional conflicts.

CFTC Commissioner Caroline Pham told attendees at that gathering that “the turf war is over,” while Atkins described it as “a turning point for American financial markets.“

That roundtable brought together executives from major platforms, including Kraken, Polymarket, Kalshi, Nasdaq, CME Group, and Robinhood, to discuss coordinated oversight of digital assets.

Atkins emphasized at the time that “for years, the SEC and CFTC have worked in silos, sometimes at odds,” but that era had ended.

The January 27 event will feature opening remarks from both chairmen, followed by a fireside chat moderated by Eleanor Terrett, co-founder of Crypto in America.

Doors open at 9:30 a.m., and the session will be broadcast live on the SEC’s website.

Agencies Accelerate Crypto Policy After Leadership Changes

Both regulators have moved aggressively on digital asset policy since new leadership took over in 2025.

Atkins assumed the SEC chairmanship in April after Gary Gensler’s departure, immediately shifting away from enforcement-based regulation toward clearer frameworks and guidance.

As reported by Cryptonews today, under Atkins, the SEC opened just 13 crypto-related enforcement actions in 2025 compared to 33 in 2024, a 60% decline and the lowest level since 2017, according to Cornerstone Research.

Eight of those cases involved fraud allegations, indicating a narrower focus on investor harm rather than broad registration theories.

The agency also dismissed seven ongoing actions and reduced total monetary penalties to $142 million, less than 3% of 2024 levels.

The SEC opened just 13 crypto enforcement cases in 2025, down 60% from 2024, with most new actions under Chair Paul Atkins focused on fraud.#SEC #CryptoEnforcement https://t.co/YI5S1uVisH

— Cryptonews.com (@cryptonews) January 23, 2026

Selig took the CFTC helm on December 22 after Senate confirmation, replacing acting chair Caroline Pham.

He immediately launched the Future-Proof initiative, a comprehensive review aimed at updating decades-old regulations for blockchain, AI-driven trading, and prediction markets.

“We are at a unique moment as a wide range of novel technologies, products, and platforms are emerging,” Selig said after his swearing-in.

“Under my leadership, the CFTC will conquer these great frontiers and ensure that the innovations of tomorrow are Made in America.“

Joint Efforts Face Congressional Pressure on Market Structure Bills

The harmonization push comes as Congress advances competing digital asset legislation.

The Senate Agriculture Committee released updated text for its Digital Commodity Intermediaries Act and scheduled a January 27 markup at 3 p.m., just hours after the Atkins-Selig event concludes.

Chairman John Boozman acknowledged that “differences remain on fundamental policy issues” with Democrats, who failed to support the bill despite extended negotiations.

The markup could proceed on party lines, unlike the House Agriculture Committee’s bipartisan 47-6 vote on similar legislation.

According to Eleanor Terrett, Senator Cory Booker’s team told Politico that he will continue working with Boozman to pass and sign the legislation, though no Democrats have publicly supported the text.

NEW: Where do we stand on crypto market structure legislation right now? The @SenateAg Committee released its latest legislative text last night, with Chairman @JohnBoozman (R-AR) acknowledging that Republicans and Democrats failed to reach a deal despite an extra two weeks of…

— Eleanor Terrett (@EleanorTerrett) January 22, 2026

Meanwhile, the Senate Banking Committee delayed its markup of the CLARITY Act until late February or March to focus on housing legislation.

Industry divisions over stablecoin yield provisions have complicated negotiations, with Coinbase CEO Brian Armstrong calling certain restrictions “catastrophic” before withdrawing support.

However, President Trump confirmed at Davos 2026 that he expects to sign crypto market structure legislation “very soon,” stating his administration is working to ensure “America remains the crypto capital of the world.”

For now, the joint regulatory event indicates that both agencies are preparing to implement whatever framework Congress ultimately delivers.

The post SEC’s Atkins and CFTC’s Selig Unite to End Crypto Regulatory Chaos appeared first on Cryptonews.

The CFTC Chair Michael Selig called his chairmanship the beginning of what he calls a “golden age” for American financial markets as he takes over leadership of the U.S. Commodity Futures Trading Commission.

His remarks come as pressure intensifies on Washington to finally clarify how digital asset markets should be regulated.

Shortly after assuming office as chairman of the agency, Selig proclaimed a comprehensive plan to revamp the agency, the Future-Proof, which is a review to update decades-old CFTC regulations to more effectively reflect markets created by crypto, blockchain, and artificial intelligence.

The Senate finally confirms @MichaelSelig as the new @CFTC Chair, ending a long leadership vacuum and setting the stage for clearer U.S. crypto regulation. #CFTC #MikeSelig https://t.co/IvLEpQhesH

— Cryptonews.com (@cryptonews) December 19, 2025

Selig Outlines Plan to Update CFTC Rules for Blockchain and AI Trading

In an announcement of the initiative put out publicly, Selig stated that the CFTC needs to be in place to provide services to the markets of the future, and that the present-day period is a turning point in U.S. finance.

Today, I am launching the “Future-Proof” initiative at the @CFTC.

We are at a pivotal moment in the evolution of American financial markets. The CFTC must be equipped to serve the markets of the future.

Read my full op-ed in today’s @washingtonpost: https://t.co/zWAAjXt4Kg. /1

— Mike Selig (@ChairmanSelig) January 20, 2026

He elaborated that opinion in a Washington Post opinion piece, in which he claimed that technological changes were altering the way that financial products are produced, traded, and consumed, and that Congress was now near enacting long-awaited legislation on digital asset market structure.

He said that legislation would have a straightforward mandate on regulators and would bring sanity to an industry that has become a market worth over 3 trillion dollars.

The message by Selig is the opposite of the regulative policy of the past few years.

His criticism of the former administration was that they operated based on enforcement measures instead of explicit rules, and that digital assets and perpetual futures were shoehorned into the systems of traditional markets.

According to Selig, the strategy outsourced innovation and reduced the input of the common American.

Under his leadership, he claimed that the CFTC will work on custom-fit, purpose-specific rules that safeguard against fraud and manipulation without choking new products before they can grow.

The Future-Proof initiative will mean that CFTC staff will undergo a thorough review of the existing rules, most of which were originally agricultural futures market rules.

Selig said those rules may still work for traditional products, but do not account for blockchain-based trading venues, prediction markets, or AI-driven risk tools.

His stated goal is to modernize requirements in a way that creates a level playing field for incumbents and new entrants, while delivering what he described as the “minimum effective dose” of regulation.

New CFTC Chair Inherits Expanding Crypto Agenda

Selig officially assumed the role on December 22 after being confirmed by the Senate on December 18, replacing acting chair Caroline Pham.

Michael Selig becomes CFTC chairman as Caroline Pham exits agency after implementing major crypto regulatory reforms including spot trading approval and prediction market relief.#CFTC #Pham #Selighttps://t.co/TznOLfEfQw

— Cryptonews.com (@cryptonews) December 23, 2025

Pham’s tenure was marked by an aggressive push to modernize the CFTC’s approach to crypto.

Over the past year, she launched the agency’s Crypto Sprint and oversaw the introduction of spot crypto trading on CFTC-regulated futures platforms.

She also implemented internal reforms, including the deployment of an automated market surveillance system that the agency said would save nearly $50 million annually.

Just before leaving office, Pham granted no-action relief to several prediction market operators, easing enforcement pressure while requiring full collateralization and transaction transparency.

The CFTC granted narrow no-action relief to four prediction markets, reducing immediate enforcement risk.#CFTC #Cryptohttps://t.co/hqT6BcApBB

— Cryptonews.com (@cryptonews) December 12, 2025

Selig has shown continuity with that agenda, while also promising a broader reset.

Since taking office, Selig has moved quickly. On January 1, he appointed Amir Zaidi, a longtime CFTC veteran who previously worked on early regulated Bitcoin products, as his chief of staff.

On January 13, he launched the Innovation Advisory Committee, replacing the former Technology Advisory Committee, to bring in expertise from industry, academia, and public interest groups as the agency prepares rules for emerging technologies.

The post New CFTC Chair Declares “Golden Age,” Launches ‘Future-Proof’ Drive to Rewrite Crypto Rules appeared first on Cryptonews.

Bitcoin Magazine

Trump-Appointed CFTC Chair Launches ‘Future-Proof’ Initiative, Signaling a Pro-Crypto Shift

U.S. Commodity Futures Trading Commission (CFTC) Chairman Mike Selig posted an op-ed on Tuesday outlining an aggressive push to modernize U.S. financial regulation, pledging to move away from what he called years of “regulation by enforcement” and toward clear, tailored rules for digital assets, prediction markets and other emerging technologies.

In a policy statement and accompanying opinion piece, Selig framed the effort as a pivotal moment for American financial markets, arguing that advances in blockchain and artificial intelligence are enabling entirely new products, platforms and business models that legacy regulations were never designed to oversee.

“Advances in technology are transforming the financial services landscape as we know it,” Selig said, adding that Congress is now “on the cusp” of passing the Digital Asset Market Clarity Act, which would establish a formal market structure for crypto in the United States.

If enacted, the legislation would expand the CFTC’s authority over digital asset markets, positioning the agency as a primary regulator for large segments of the crypto economy. 

Selig said the CFTC is prepared to take on that role and ensure innovation remains onshore rather than being driven overseas by regulatory uncertainty.

CFTC’s ‘Future-Proof’ Initiative 

The chairman announced the launch of a new “Future-Proof” initiative, under which agency staff will conduct a comprehensive review of existing CFTC rules — many of which were originally written for agricultural futures markets — to determine which should be updated or replaced to better accommodate new asset classes and trading venues.

“Decades-old rules designed for pork bellies and wheat futures do not contemplate blockchain-native markets that trade 24/7,” Selig said. “The CFTC must meet innovators where they are.”

Selig drew a sharp contrast with the Biden administration’s approach, criticizing prior regulators for applying legacy rules to novel products such as digital assets and perpetual futures through enforcement actions rather than formal rulemaking. 

That strategy, he argued, pushed startups offshore and limited access for U.S. market participants.

Under the new approach, Selig said the agency will focus on “the minimum effective dose of regulation” — rules that protect against fraud, manipulation and abuse without stifling experimentation. Future policy, he added, should be established through notice-and-comment rulemaking to provide durability across administrations.

The chairman also highlighted rapid growth in areas such as prediction markets and digital assets, noting that crypto has expanded from a niche experiment into a market exceeding $3 trillion in value. These developments, he said, require regulatory frameworks that are purpose-built rather than retrofitted.

“Anyone with a smartphone and an internet connection can now access peer-to-peer markets that operate around the clock,” Selig said, pointing to both blockchain-based platforms and the increasing use of artificial intelligence in risk management and trading strategies.

Selig credited President Donald Trump’s broader regulatory agenda for creating the conditions for what he described as a potential “golden age” of American financial markets. He said coordination among financial regulators will be critical as new legislation reshapes oversight of digital assets.

“If Congress passes market structure legislation and hands us the torch, we will ensure these markets flourish at home,” Selig said. “The great innovations of today and tomorrow should be made in America.”

This post Trump-Appointed CFTC Chair Launches ‘Future-Proof’ Initiative, Signaling a Pro-Crypto Shift first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

The recent Bitcoin rally may be driven by real spot demand on Coinbase. Data indicating elevated spot activity on Coinbase suggests that this move higher is bolstered by direct purchases rather than leveraged positioning in derivatives markets. This distinction matters because Spot buying reflects a real capital commitment, not a temporary bet.

Why Risk Management When Demand Is Structural

The Bitcoin rally since Sunday’s Powell subpoena news has been largely linked to Coinbase spot buyers. Crypto trader Alex Krüger has highlighted on X that both the Adjusted Coinbase Premium and Cumulative Volume Delta (CVD) show steady spot accumulation, which is exactly why this has been a true hated rally even among bitcoiners. For over a month, the dominant narrative in every crypto chat room has been that BTC is lagging while equities and commodities are moving upward.

However, the fun fact is that equities are not accurate, but 40% of the S&P 500 (Standard & Poor’s 500) stocks have actually closed red in 2025, (39.2% to be precise). Perception is doing a lot of work here, and the United States Department of Justice (DOJ) move on Powell represented a major macro litmus test for BTC. Kruger claims that the BTC long-term value proposition is about protecting against the tail risk of central bank profligacy. 

On Monday, BTC surged upward, although the move was just a little surge. According to Krüger, the BTC key battlefield remains the 50-week moving average (WMA), which is currently around $101,420. Meanwhile, the trader is looking to take some profits into short liquidations right above the $100,000 mark.

Why Bitcoin Benefits First From Institutional Flows

The Digital Asset Market Clarity Act is set for markup today, January 15th, 2026, in the Senate Banking Committee. According to the update by BTC_road_to200k on X (Formally Twitter), this is where the lawmakers will debate and shape the final version of the bill before it moves forward.

This matters because the art aims to clear up the ongoing regulatory uncertainty between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), which has been a major source of hesitation for large institutional players looking to move into Bitcoin and other digital assets.

Furthermore, the Clarity Act will be a turning point as it aims to clear rules that will bring more confidence to banks, pension funds, and large investors, which often translates into higher demand and stronger price momentum for BTC. As the regulatory clouds lift, the market might start experiencing a renewed wave of institutional money flowing in, and that’s obviously bullish for BTC.

A top policy official at crypto firm Paradigm warned this week that a broad overhaul of US crypto rules could take years of agency work to finish.

Justin Slaughter, Paradigm’s vice president for regulatory affairs, said the law itself would only begin a longer process of writing dozens of detailed rules that agencies must draft, publish for comment, and finalize.

Lawmakers Unveil Draft Bill

On January 13, 2026, US senators released a draft bill meant to clarify which tokens are securities or commodities and to set who regulates spot crypto trading.

The draft would give the Commodity Futures Trading Commission authority over many spot markets and includes measures aimed at limiting how stablecoins are used to pay interest, among other provisions.

Rulemaking Could Stretch For Years

Slaughter pointed out that the bill would require about 45 separate, detailed rules to be written by regulators before its goals could be fully enforced.

That is a heavy technical lift. He compared the likely timeline to rules written after the Dodd-Frank law, which took roughly three to eight years to be finalized for many parts of the financial system.

Ok, so here are the main takeaways I have.

First, this bill is still missing a lot of things. There’s nothing at all on ethics (which is going to be a big hang-up for people) nor is there anything on a quorum requirement for the Commissions. The Dems won’t sign a bill that… https://t.co/2ckoCO6QlW

— Justin Slaughter (@JBSDC) January 14, 2026

That comparison matters because it shows how slow the work can be even when lawmakers act quickly. Agencies must draft proposals, take public comments, revise drafts, and then publish final rules. Each step can be delayed by legal challenges, staffing limits, or political shifts.

Industry Groups Prepare For Phased Change

Exchanges, banks, and stablecoin firms have already begun drafting compliance plans. Some industry players say they prefer the bill’s tilt toward the CFTC for spot oversight, believing it could ease certain market practices.

Others worry that long rulemaking windows will leave uncertainty for months, or even years, while firms try to follow shifting guidance.

What Could Slow Things Down

Among the likely bottlenecks: fights over who enforces which rules, debates on how decentralized finance fits under old statutes, and political turnover.

Slaughter warned that parts of the rulemaking might span two presidential terms before everything is settled. That would leave the sector operating under a mix of new guidance and legacy rules for a long time.

Lawyers And Regulators Step Into The Fray

Regulatory staff at the SEC and CFTC have already ramped up work on crypto issues. The SEC has signaled plans to update long-standing securities rules to better address tokenized instruments.

At the same time, the CFTC is preparing market-structure and custody guidance tied to its growing role. These agency moves will shape the final form of the technical rules required by whatever law, if any, becomes binding.

Featured image from Unsplash, chart from TradingView

• Coinbase argues the Commodity Exchange Act gives the CFTC exclusive authority over event contracts.
• Earlier cases involving Kalshi show courts have yet to settle the issue decisively.
• The rulings could shape how prediction markets and related financial products develop nationwide.

Coinbase has taken its dispute with US regulators to court as it expands into prediction markets, filing lawsuits against authorities in Connecticut, Illinois, and Michigan.

The legal challenge centres on a fundamental question facing financial markets in the United States: whether prediction markets should be regulated at the federal level as financial derivatives or treated by states as gambling products.

Coinbase argues that the answer has already been set out in federal law.

State regulators disagree, setting up a clash that could redefine oversight for event-based markets tied to finance, politics, and real-world outcomes.

A jurisdictional battle takes shape

The exchange’s case is built around the Commodity Exchange Act, which grants the Commodity Futures Trading Commission authority over derivatives, including event contracts.

Coinbase maintains that prediction markets listed on CFTC-supervised platforms fall squarely within this framework.

From the company’s perspective, state efforts to apply local gambling laws amount to regulatory overreach.

Paul Grewal, Coinbase’s Chief Legal Officer, has positioned the lawsuits as a response to what the company sees as a direct conflict between federal authority and state enforcement.

Coinbase argues that allowing individual states to intervene risks creating a fragmented regulatory system that undermines national consistency. In that scenario, stricter jurisdictions could effectively block federally approved products across the country.

Gambling labels under scrutiny

A central issue in the lawsuits is how prediction markets are defined.

State regulators have moved to classify them alongside sports betting and casino-style gambling.

Coinbase rejects this comparison, arguing that the mechanics are fundamentally different.

Prediction markets operate as marketplaces that match buyers and sellers who take opposing views on future events.

Prices are set by market demand rather than by a house that manages odds.

Coinbase says this structure aligns prediction markets with derivatives trading, not wagering, and places them within the scope of federal commodities law rather than state gaming statutes.

Federal oversight and compliance claims

Coinbase has also pointed to the regulatory obligations attached to CFTC-supervised markets.

These include monitoring for manipulation, position limits, and ongoing compliance requirements designed to protect market integrity.

According to the exchange, these safeguards already address many of the consumer protection concerns cited by state regulators.

Ryan VanGrack, Coinbase’s Vice President of Legal, has argued that state-level intervention risks duplicating or conflicting with federal oversight.

The company maintains that pulling prediction markets under local gambling rules ignores how federally regulated derivatives markets operate and threatens uniform supervision.

The post Who regulates prediction markets? Coinbase forces a US legal test appeared first on CoinJournal.

• Michael Selig is confirmed as CFTC chair, ending a long interim period at the US derivatives regulator.
• Selig signals a narrower enforcement focus as Congress weighs expanding the CFTC’s crypto authority.
• Leadership change comes as debate intensifies over digital assets and US market structure rules.

After nearly a year of temporary leadership, Michael Selig was confirmed by the US Senate on December 18 and will soon be sworn in as the 15th chairman of the Commodity Futures Trading Commission

His appointment brings an end to an extended interim period at the derivatives market regulator and places a familiar figure back at the centre of US market oversight.

Selig’s confirmation comes as policymakers and market participants closely track how the CFTC will position itself amid ongoing debates over digital assets, market structure, and regulatory coordination.

With Congress weighing legislation that could significantly expand the agency’s authority, the timing of the leadership change is drawing heightened attention across traditional and crypto markets.

Return to a familiar regulator

Selig’s professional ties to the CFTC run deep.

He first joined the agency in 2014, serving as a law clerk to then-Commissioner Christopher Giancarlo, who later became chairman.

After leaving the agency, Selig moved into private practice, where he advised trading firms, exchanges, and digital asset companies on compliance with US securities and commodities laws.

Earlier this year, Selig returned to government service as chief counsel to the Securities and Exchange Commission’s Crypto Task Force.

In that role, he acted as a senior advisor to Chairman Paul Atkins and was involved in inter-agency discussions on supervising digital asset markets, placing him at the intersection of securities and commodities regulation.

Leadership transition at the CFTC

Selig will succeed Caroline Pham, who has served as acting chair for much of 2025.

For several months, Pham was also the CFTC’s only Senate-confirmed commissioner, a situation that underscored the agency’s leadership vacuum during a period of regulatory change.

Under Pham’s tenure, the CFTC continued to operate but with limited long-term direction, as major policy decisions awaited permanent leadership.

Selig’s confirmation restores a Senate-backed chair at a moment when the commission’s mandate could soon broaden.

Enforcement direction and priorities

During his confirmation hearing, Selig signalled support for a more targeted enforcement strategy.

He argued that focusing on minor technical violations can consume agency resources and encourage legitimate firms to move operations offshore, without materially improving market integrity.

At the same time, he emphasised that the CFTC must remain active in pursuing fraud, manipulation, and abusive conduct.

His stated approach aligns closely with policies advanced under Pham, where enforcement efforts were narrowed to prioritise complex fraud cases and retail harm rather than paperwork-based violations.

Over the past year, the CFTC also revised its investigation procedures to provide firms with greater transparency and additional time during enforcement processes, reflecting a shift in regulatory tone.

Crypto oversight and legislative backdrop

On digital assets, Selig is expected to continue efforts to bring crypto-related activity into regulated US markets.

The CFTC has already launched pilot initiatives covering tokenised collateral and listed spot crypto products on regulated exchanges.

Selig has previously supported clearer market structure rules and stronger coordination with the SEC, the Treasury Department, and banking regulators.

His confirmation coincides with congressional debate over bills that could grant the CFTC primary oversight of spot crypto commodity markets, potentially expanding the agency’s role at a critical stage in crypto regulation.

With a full agenda and limited transition time, Selig’s early decisions will be closely watched across financial markets.

The post Michael Selig confirmed as CFTC chair, ending interim leadership period appeared first on CoinJournal.

Bitcoin Magazine

CFTC Scraps ‘Outdated and Overly Complex’ Crypto Guidance as U.S. Regulations Evolve

The Commodity Futures Trading Commission (CFTC) is rolling back legacy policy on digital assets, marking another step in its reorientation toward regulated crypto markets. 

Acting CFTC Chairman Caroline D. Pham said the agency is withdrawing its years-old guidance on the “actual delivery” of virtual currencies, a document that had shaped how firms could custody and settle digital asset transactions since 2020.

The decision clears a path for new guidance that reflects the rise of tokenized markets, recent legislation and the CFTC’s growing oversight of spot crypto trading.

“Eliminating outdated and overly complex guidance that penalizes the crypto industry and stifles innovation is exactly what the Administration has set out to do this year,” Pham said. 

Pham added that the move shows the agency can protect U.S. traders while supporting broader access to regulated markets.

The withdrawn advisory outlined the conditions under which virtual currency could be considered “delivered” in retail commodity transactions. The framework was drafted in an era when regulated digital asset infrastructure was limited and focused on Bitcoin custody and settlement. 

Since then, Congress passed the GENIUS Act, the CFTC opened the door to regulated spot trading, and tokenization has become a core focus across major financial institutions. Staff now views the 2020 advisory as out of step with current market realities.

The withdrawal also advances the CFTC’s effort to implement recommendations from the President’s Working Group on Digital Asset Markets. 

The CFTC’s broader crypto policy turn

The announcement builds on a series of steps taken in early December that signal an effort to bring crypto activity onshore and under federal supervision. 

Earlier this month, the agency launched a pilot program that permits Bitcoin and other crypto to serve as collateral in regulated derivatives markets. The program includes detailed reporting and risk-management requirements for futures commission merchants, along with updated guidance on how tokenized assets fit within existing CFTC rules.

Under the pilot, firms must submit weekly reports that itemize the digital assets held in customer accounts and notify regulators of any material incidents tied to tokenized collateral. 

The structure is meant to provide the CFTC with visibility into operational and custody risks while firms test the use of crypto in margin accounts.

The agency also issued a no-action position for FCMs that accept non-securities digital assets, including payment stablecoins, clarifying how capital and segregation requirements apply. At the same time, staff withdrew restrictions from 2020 that had limited the use of digital assets as collateral.

CFTC’s guidance with U.S. spot crypto markets 

The CFTC also approved federally regulated spot Bitcoin and crypto trading for the first time. Bitnomial, a U.S. derivatives platform, will begin offering spot, perpetuals, futures and options on a single exchange under full CFTC supervision next week. 

The exchange’s structure supports unified margin and net settlement across product types, reducing redundant collateral requirements for traders.

Pham said the expansion of spot trading under CFTC oversight offers U.S. traders a secure alternative to offshore venues and creates an environment where domestic firms can operate without state-by-state uncertainty.

The agency’s shift extends beyond trading. Polymarket, a crypto-based prediction market, secured approval to relaunch in the U.S. after upgrading its compliance systems and acquiring a registered platform. 

The CFTC has said its broader goal is to strengthen oversight of digital markets without blocking the adoption of new technology.

In other news, the CFTC has approved Gemini’s application for a Designated Contract Market license, clearing the way for the exchange to launch a prediction market and potentially expand into crypto futures, options, and perpetual swaps.

Gemini first applied for the license in 2020, well before the recent surge of interest in prediction markets and platforms.

This post CFTC Scraps ‘Outdated and Overly Complex’ Crypto Guidance as U.S. Regulations Evolve first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

CFTC Launches Pilot Program Allowing Bitcoin To Be Used as Collateral In Derivatives Markets

The Commodity Futures Trading Commission announced the launch of a U.S. digital assets pilot program that will allow bitcoin, ethereum and the stablecoin USDC to be used as collateral in regulated derivatives markets, marking another major policy shift in how U.S. regulators approach tokenized assets.

The move includes new guidance for tokenized collateral, a limited no-action framework for futures commission merchants (FCMs), and the withdrawal of legacy restrictions that the agency said are no longer relevant following passage of the GENIUS Act.

Acting CFTC Chair Caroline Pham said the program is designed to expand the use of digital assets in regulated markets while maintaining oversight and customer protections.

“Americans deserve safe U.S. markets as an alternative to offshore platforms,” Pham said in a statement. “Today, I am launching a U.S. digital assets pilot program for tokenized collateral that establishes clear guardrails to protect customer assets and provides enhanced CFTC monitoring and reporting.”

Bitcoin and other crypto as a pilot

Under the pilot, FCMs will be temporarily allowed to accept a narrow set of digital assets like Bitcoin as customer margin, according to a CFTC announcement. 

During the first three months of participation, firms will be required to submit weekly reports to the CFTC detailing the total amount of digital assets held in customer accounts, broken out by asset and account class. 

Companies must also notify regulators of any material incident involving the use of digital collateral.

The agency said the reporting requirement is intended to give staff real-time insight into operational risks while allowing firms controlled access to tokenized collateral.

Last week, the CFTC allowed federally regulated spot crypto trading in the U.S. for the first time, with Bitnomial set to launch its exchange next week under CFTC oversight. 

Pham said CFTC-registered venues will list spot crypto products, enabling retail and institutional traders to access spot, futures, options, and perpetuals on a single regulated platform.

Alongside the pilot program, the CFTC’s Market Participants Division, Division of Market Oversight and Division of Clearing and Risk issued formal guidance on how tokenized assets should be evaluated within existing regulatory frameworks.

The guidance emphasizes that CFTC rules are “technology neutral” and that tokenized assets should be assessed individually under existing policies rather than treated as a separate asset class.

The framework applies to tokenized real-world assets such as U.S. Treasuries and money market funds. It outlines standards for legal enforceability and things like custody and control.

The agency also issued a no-action position for FCMs that accept non-securities digital assets as margin, including payment stablecoins. 

The relief allows firms to incorporate qualifying digital assets into customer accounts while clarifying how capital and segregation rules apply under the new regime.

Crypto industry applause

The CFTC formally withdrew Staff Advisory No. 20-34, which previously restricted how virtual currencies could be held in customer accounts. The advisory had been in place since 2020 and had limited the operational use of digital assets as collateral.

The agency said developments in digital markets and the enactment of the GENIUS Act made the advisory obsolete.

Crypto and fintech firms quickly welcomed the decision, saying the changes offer long-awaited regulatory certainty.

Coinbase Chief Legal Officer Paul Grewal said the move confirms the industry’s belief that stablecoins and digital assets can reduce risk and improve efficiency in financial markets, according to a CFTC announcement. 

Circle President Heath Tarbert also chimed in and said the changes would reduce settlement risk and friction in derivatives trading by enabling near real-time margin settlement.

Crypto.com CEO Kris Marszalek said the announcement would allow tokenized collateral to be used in U.S. markets for the first time at scale, adding that it would support 24/7 trading in regulated derivatives products.

This post CFTC Launches Pilot Program Allowing Bitcoin To Be Used as Collateral In Derivatives Markets first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

CFTC Opens Door for Spot Bitcoin and Crypto Trading in U.S. Markets

The CFTC is opening the door for federally regulated spot crypto trading in the U.S. for the first time, with Bitnomial’s exchange opening up next week. 

Acting Chairman Caroline Pham announced that listed spot crypto products will trade on CFTC-registered exchanges, marking a major milestone in the effort to bring digital asset trading to the United States and under full federal oversight.

The announcement coincides with the launch of Bitnomial, Inc., a U.S.-based derivatives exchange, which will operate the first-ever leveraged retail spot crypto exchange under CFTC regulation. 

Bitnomial’s Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO) will allow both retail and institutional traders to trade spot, perpetuals, futures, and options on a single platform. 

Unified portfolio margining and net settlement eliminate redundant margin requirements, boosting capital efficiency and reducing counterparty risk.

“Leveraged spot crypto trading is now available under the same regulatory framework as U.S. perpetuals, futures, and options,” said Luke Hoersten, founder and CEO of Bitnomial. “Broker intermediation and Clearinghouse net settlement provide the capital efficiency traders need. We’re bringing leveraged spot crypto trading back to the U.S. with CFTC oversight.”

BREAKING: CFTC announces spot Bitcoin and crypto can now trade on CFTC-registered exchanges

CFTC said this is to help “make America the crypto capital of the world.” pic.twitter.com/dfzuNPtrTa

— Bitcoin Magazine (@BitcoinMagazine) December 4, 2025

Pham emphasized that the new framework gives Americans a safer alternative to offshore platforms, which have often been described as the “wild west.” 

Speaking on Fox News, she highlighted the collapse of FTX as a cautionary tale, noting that many investors lost out due to a lack of regulatory protections.

 “Not only do we want Americans to come back home to trade where they have the protections they deserve, but this also encourages U.S. companies to invest, build, and hire here,” Pham told Fox Business.

Under the new system, all orders—retail and institutional—will receive equal treatment. There is no preferential routing, no informational advantage, and equal access to liquidity, a structure long sought by industry participants.

For brokers and institutions, the move resolves longstanding compliance challenges related to state money transmitter rules, finally providing access to a federally regulated spot market.

The launch represents the culmination of Pham’s pro-innovation leadership at the CFTC. By recognizing that retail commodity transactions can be offered on a DCM and cleared through a DCO, the agency has created a compliant pathway for domestic leveraged spot crypto trading. 

United States as a global crypto leader

This approach aligns with broader goals to make the U.S. a global hub for digital asset markets while maintaining investor protections. The convergence of spot, perpetuals, futures, and options on a single platform also transforms capital efficiency for traders.

 Rather than maintaining fully collateralized positions across multiple venues, they can now offset risk across all product types on one exchange.

The Bitnomial platform is scheduled to go live the week of December 8, 2025. Pham called it a “historic milestone” for U.S. crypto markets and a key step in establishing the country as a leader in digital asset innovation. 

CFTC greenlights Polymarket

Earlier this week, Polymarket, the crypto-based prediction market platform, launched a U.S.-focused app today after receiving CFTC approval, ending nearly four years of restrictions on American users.

Polymarket bypassed the traditional multi-year CFTC registration by acquiring QCEX, a registered platform, for $112 million, and received a no-action letter in September to resume U.S. operations.

The platform upgraded its systems to meet CFTC requirements, including enhanced surveillance, clearing procedures, and regulatory reporting. 

It now supports direct Bitcoin deposits alongside stablecoins and has attracted potential investor interest, including a possible $2 billion investment from Intercontinental Exchange.

The CFTC was created in 1974 to regulate derivatives markets like futures, options, and swaps. Its mission is to oversee markets, prevent abuses, and protect customer funds. The agency monitors exchanges, trading platforms, and intermediaries, while its Division of Enforcement investigates violations.

This post CFTC Opens Door for Spot Bitcoin and Crypto Trading in U.S. Markets first appeared on Bitcoin Magazine and is written by Micah Zimmerman.