US crypto regulation: SEC, CFTC and the laws explained

US crypto regulation rests on two agencies and one enacted law. The Securities and Exchange Commission (SEC) oversees tokens sold as investment contracts and exchange-traded funds. The Commodity Futures Trading Commission (CFTC) oversees futures and derivatives on bitcoin and other commodity-like crypto assets. Stablecoins have had their own statute, the GENIUS Act, since July 2025. What the US still lacks is a full crypto market structure law: the CLARITY Act failed a procedural Senate vote on September 15, 2026, so regulators are filling the gap with their own rules.

Why US crypto regulation matters globally

The US is home to the largest market for bitcoin ETFs and to the main dollar stablecoins. What the SEC and CFTC decide shapes which products institutions can buy, how global exchanges handle American customers, and how USDT and USDC compete.

Here is what that looks like in our data. According to SoSoValue figures on our ETF tracker, US spot bitcoin ETFs held $108.3B in net assets and about 1.29 million BTC as of Oct 22, 2026, with $164M of net outflows that day. Total stablecoin supply stood at $304.9B on Oct 23, 2026 (DefiLlama). Both numbers exist because of US rules: the ETFs launched after an SEC decision, and the future of dollar stablecoins now runs through the GENIUS Act. We explain how to read those flows in our bitcoin ETF guide, and live market numbers are on the daily dashboard.

Who regulates crypto in the US: SEC, CFTC and the rest

The core fight of recent years is the line between the SEC and the CFTC. The SEC treats bitcoin as a non-security commodity, as then-Chair Gary Gensler stated when spot bitcoin ETFs were approved on January 10, 2024. Most other tokens are murkier: if buyers expect profits from a team's efforts, a token can be part of an investment contract and fall under the SEC.

Plain spot trading of bitcoin on an exchange, however, has no full federal regulator. The CFTC only has anti-fraud and anti-manipulation authority there, while spot platforms operate under state money transmitter licenses. CFTC Chairman Michael Selig acknowledged that limit when the agency floated new rules in October (our coverage).

In January 2026 the two agencies turned Project Crypto into a joint effort covering a shared token taxonomy, surveillance data sharing and streamlined processes for firms active in both markets (Morrison Foerster).

The GENIUS Act: the one crypto law on the books

President Trump signed the GENIUS Act on payment stablecoins on July 18, 2025 (White House). It passed the Senate 68⁠–⁠30 and the House 308⁠–⁠122 (Latham & Watkins). The essentials:

1. Only permitted issuers may issue payment stablecoins in the US: bank subsidiaries, nonbanks approved by the OCC, and issuers below $10B in outstanding supply that opt for state oversight (Morgan Lewis).
2. Reserves must cover at least 100% of tokens in liquid assets such as dollars and short-term Treasuries, with the reserve mix published monthly.
3. Issuers may not pay holders interest or yield simply for holding the coin.
4. A payment stablecoin is legally neither a security nor a commodity, so the SEC and CFTC largely stay out.

The law takes effect on the earlier of 18 months after signing or 120 days after regulators finalize their rules. The outside date is January 18, 2027, per the Texas Department of Banking. The OCC finalized its rule on Oct 21, 2026; the Fed, FDIC and Treasury are still working on theirs. For how stablecoin supply links to bitcoin's price, see our stablecoin explainer.

The CLARITY Act: market structure bill, stalled

The CLARITY Act (H.R. 3633) was meant to draw the SEC–CFTC line in statute. As Latham & Watkins summarizes it, the bill gives the CFTC exclusive jurisdiction over spot markets in "digital commodities," keeps investment contract assets with the SEC, and creates CFTC registration for crypto exchanges, brokers and dealers.

How far it got:

1. July 17, 2025: the House passed it 294⁠–⁠134.
2. January 29, 2026: the Senate Agriculture Committee advanced its version 12⁠–⁠11.
3. May 14, 2026: the Senate Banking Committee advanced its text 15⁠–⁠9.
4. September 15, 2026: the Senate cloture vote failed 49⁠–⁠50, short of the 60 needed (FinTech Weekly).

Democrats voted no along with Republicans Susan Collins, Josh Hawley and Jerry Moran. Senator Thom Tillis switched his vote to no and entered a motion to reconsider, which keeps a path to revive the bill. The fight centered less on the oversight model than on ethics limits for officials, consumer protection, illicit finance and stablecoin yield, which banks oppose. The next milestone is the November 3, 2026 midterm election; bills not enacted by this Congress generally have to be reintroduced when the new one convenes in January 2027.

What regulators are doing without a law

With Congress stuck, the SEC and CFTC are writing rules on their own.

• Generic listing standards. On September 17, 2025, the SEC approved rules letting Nasdaq, NYSE Arca and Cboe BZX list spot commodity ETPs, including crypto, without a separate approval for each fund that meets the criteria.
• Regulation Crypto Assets. On August 18, 2026, the SEC proposed two registration exemptions for token fundraising, up to $5M over four years and up to $75M per 12 months, with disclosure standards, plus a test for when a token stops being part of an investment contract. The comment file drew about 140 letters (our report).
• Regulation CTX and CAM. On October 5, 2026, the CFTC requested comment on rules for leveraged retail crypto trading and a new venue type, the crypto asset market. "The American people deserve clarity, certainty, and consumer protections in the crypto asset markets," said CFTC Chairman Michael Selig.
• Taxes. Starting with 2025, US brokers report customers' digital asset sales on Form 1099-DA.

What it means for investors outside the US

• US rules set the bar for the biggest stablecoin issuers; the OCC's final rule spells out separate standards for foreign issuers that want access to the US market.
• Spot ETFs are reachable through brokers in many countries, and their flows are a major driver of the bitcoin price.
• SEC views on which tokens are securities ripple into global listings: exchanges serving Americans are more cautious with such tokens. Licensing is one of the checks in our guide on choosing a crypto exchange.
• Agency rules are weaker than statute: a future commission can rewrite them. That is why the market is still waiting for a market structure law.

Common mistakes

• "Crypto is unregulated in the US." It is regulated piecemeal: ETFs, futures, stablecoins and taxes already have rules; the federal gap is spot token trading.
• "The CLARITY Act is law." It is not. As of Oct 23, 2026, the GENIUS Act is the only one enacted.
• "A proposed rule is already in force." Regulation Crypto Assets and Regulation CTX/CAM are still proposals; final text and timing can change.
• "ETF approval means the SEC endorses bitcoin." The SEC's own statement says it did not approve or endorse bitcoin.

FAQ

Is bitcoin a security or a commodity in the US? A commodity. The SEC described it that way when approving spot ETFs in January 2024, and the CFTC regulates bitcoin futures.

When does the GENIUS Act take effect? No later than January 18, 2027, or earlier if 120 days pass after all federal regulators finalize their rules.

What happens to the CLARITY Act now? It has not been formally rejected, and a motion to reconsider is pending. If it does not pass before this Congress ends, it must be reintroduced in 2027.

Do US rules affect people in other countries? Directly, only users of US services. Indirectly, everyone: through stablecoins, ETFs and global exchange policies.

This is not investment advice.