SEC Chair pushes for jurisdictional delineation, the gray area of cryptocurrency regulation is about to be broken open

SEC Chairman Paul Atkins’ latest statement is of great significance to the cryptocurrency market this week. He fully supports Congress’s clear delineation of jurisdiction between the SEC and the U.S. Commodity Futures Trading Commission and looks forward to the Trump administration signing a bipartisan market structure bill in the coming months. Behind this stance are the upcoming critical Senate hearings and a pivotal moment for cryptocurrencies to move out of regulatory uncertainty.

Why Regulatory Jurisdiction Division Has Become the Focus

The Gray Area Dilemma

According to the latest news, the most urgent issue in the current crypto asset market is regulatory uncertainty. The unclear responsibilities between the SEC and CFTC have led many projects and exchanges into a regulatory gray area, directly affecting institutional investors’ willingness to enter. Paul Atkins emphasized that the most important thing for investors is to help the crypto asset market move out of this uncertainty.

Progress of the Clarity Act

The Senate Banking Committee will review and amend the Clarity Act on January 15. The core goal of this bill is to clarify the responsibilities of the two regulatory agencies and create a new framework for digital asset entities. Based on related information, the market currently predicts an approximately 80% chance of the bill passing in 2026.

Formation of Bipartisan Consensus

This is not policy from one side but legislation supported by both parties. The very fact that this consensus has formed indicates the importance and urgency of the issue. The Trump administration has expressed support, adding political momentum to the bill’s advancement.

Market Reactions and Institutional Adoption

Institutional Capital Readiness

Morgan Stanley has submitted an application to the SEC to launch ETFs tracking Bitcoin, Ethereum, and Solana. This is not an isolated case but a collective action by Wall Street amid improved regulatory outlooks. Goldman Sachs analysts point out that the ongoing Clarity Act is a significant catalyst for further institutional adoption of crypto assets, especially facilitating participation by buy-side and sell-side financial institutions.

Shift in Market Expectations

From large banks to pension funds, institutions are moving from cautious testing phases to full deployment. Behind this shift is an expectation for clearer regulatory frameworks. According to information, Bitcoin is currently trading at about $90,627, and analysts’ price forecasts for 2026 range from $75,000 to $250,000, reflecting optimistic market expectations for policy progress.

Risks to Watch

Exchanges like Coinbase have expressed concern over restrictions in the bill regarding user rewards (such as staking yields), even threatening to withdraw support if certain restrictions are implemented. This indicates that while the direction is clear, specific provisions still need to balance various interests.

Key Focus Areas Moving Forward

The Senate Banking Committee’s review on January 15 is a critical upcoming milestone. Whether the bill can proceed smoothly depends on whether it can be passed in the first half of 2026; otherwise, the November midterm elections could delay the legislative process. Additionally, the final wording of the bill, especially regarding stablecoins and developer responsibilities, will directly impact industry participants’ attitudes.

Summary

The latest statement from the SEC Chairman marks the beginning of a policy consensus on clarifying the cryptocurrency regulatory framework. This week’s Senate review, an estimated 80% chance of passage, and ETF applications from institutions like Morgan Stanley all point in the same direction: cryptocurrencies are moving from the gray area toward regulation. The potential market impact could be profound, affecting not only short-term price trends but also whether institutional capital can truly enter on a large scale in the future. Close attention should be paid to the progress of the Senate’s review on January 15 and the specific final provisions of the bill.