U.S. Senators Adam Schiff (D-CA) and John Curtis (R-UT) are planning to introduce a bipartisan bill that would prohibit the Commodity Futures Trading Commission from exercising certain regulatory powers over cryptocurrency markets, according to a Wall Street Journal report. The legislation represents a rare cross-party effort to reshape the federal government’s approach to digital asset oversight.
Bipartisan Bill
Sen. Adam Schiff (D-CA) and Sen. John Curtis (R-UT) are co-sponsoring legislation to restrict CFTC authority over crypto — a rare cross-aisle alliance on digital-asset regulation. (Source: WSJ)
What the Schiff-Curtis Bill Would Do to the CFTC
The proposed legislation, first reported by the Wall Street Journal, pairs a Democrat and a Republican in an unusual alliance on crypto policy. Schiff, a California Democrat, and Curtis, a Utah Republican, are targeting specific CFTC authorities that the agency has used to assert jurisdiction over spot crypto markets and derivatives.
KEY POINTS
- Senators Schiff (D-CA) and Curtis (R-UT) plan to introduce a bipartisan bill restricting CFTC authority over crypto.
- The legislation targets the CFTC’s contested jurisdiction over digital asset markets, an area of ongoing regulatory turf battles with the SEC.
- Bipartisan crypto bills have historically had stronger prospects for advancing through the Senate.
The CFTC has positioned itself as a primary federal regulator of digital assets, particularly those classified as commodities. The agency has long argued that Bitcoin and certain other tokens fall under its purview as commodity products.
100+
CFTC digital-asset enforcement actions brought since 2015 — the regulatory authority the proposed bipartisan bill seeks to restrict. (Source: CFTC)
The CFTC’s enforcement track record in crypto has been substantial, with the agency bringing over 100 actions related to digital assets since 2015. That enforcement posture is precisely what the Schiff-Curtis bill appears to target, seeking to draw clearer boundaries around the commission’s crypto mandate.
Bipartisan framing is significant in this context. Crypto legislation that draws support from both parties has historically faced better odds of advancing through committee and reaching a Senate floor vote. The pairing of Schiff and Curtis signals that concerns about regulatory overreach by the CFTC extend across the political spectrum.
What This Means for U.S. Crypto Regulation
The bill enters a legislative landscape already shaped by an intensifying jurisdictional contest between the SEC and CFTC over digital assets. The core question, whether specific tokens qualify as securities or commodities, remains unresolved and determines which agency has oversight authority.
The SEC vs. CFTC Divide
The SEC has moved to clarify how federal securities laws apply to crypto assets, while the CFTC has simultaneously expanded its own claims to jurisdiction. Earlier this year, the Senate Agriculture Committee advanced a separate bill to formally establish CFTC regulatory authority over certain digital commodities.
The Schiff-Curtis bill would push in the opposite direction, restricting rather than expanding the CFTC’s crypto powers. This creates a direct tension with industry groups and lawmakers who have lobbied for the CFTC to serve as a primary crypto regulator, viewing it as more industry-friendly than the SEC.
Legal analysts have described the current U.S. framework as a “two-lane highway” model, with digital securities regulated by the SEC and digital commodities by the CFTC. The proposed bill could narrow one of those lanes considerably.
Broader Legislative Context
The 119th Congress has seen heightened activity on crypto market structure. Multiple legislative proposals are competing to define how digital assets are classified and which agencies oversee them, part of what legal observers have called a push to give crypto its formal regulatory rulebook.
For traders and exchanges currently operating under CFTC oversight, the bill introduces a new variable. Platforms that have structured their compliance around CFTC guidance on crypto derivatives and spot markets may need to reassess if the legislation advances. The recent streak of Bitcoin spot ETF inflows underscores how closely market participants are watching regulatory developments.
The regulatory debate also intersects with broader digital asset trends across the globe. Governments across Asia have been moving to clarify their own crypto frameworks, putting pressure on U.S. lawmakers to provide equivalent clarity for domestic markets.
Whether the Schiff-Curtis bill gains traction in committee will depend on how it aligns with competing proposals. With significant token events and market activity continuing through Q1 2026, the industry is watching Washington closely for signals on which regulatory path will prevail.
The bill has not yet been formally introduced, and its full text has not been made public. Senate committee assignments and co-sponsor recruitment will shape its trajectory in the coming weeks.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
