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Weekly Crypto Regulation Roundup: Stablecoin Boom, CFTC Power Moves, and Senate Shake-Ups

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A wave of main coverage developments throughout Washington is reshaping the U.S. digital asset regulatory setting, with stablecoin warnings from the Federal Reserve, new readability rising on the Commodity Futures Trading Commission (CFTC), contemporary Senate dynamics, and shifting positions on the Securities and Exchange Commission (SEC). This exhibits a transformative second for a way the U.S. will govern crypto markets heading into 2026.

Fed Governor Warns Stablecoin Surge Could Push Down U.S. Interest Rates

A senior Federal Reserve official has issued one of the strongest warnings but concerning the macroeconomic implications of the booming stablecoin sector. Fed Governor Stephen I. Miran, talking on the BCVC Summit 2025 in New York, stated the fast rise of dollar-backed stablecoins—which now course of trillions in funds—might change into a pressure shaping long-term rates of interest.

In a speech titled “A Global Stablecoin Glut: Implications for Monetary Policy,” Miran argued that mounting international demand for dollar-backed tokens is rising purchases of U.S. Treasuries and different high-quality greenback property. That, he stated, mirrors the “international financial savings glut” of the early 2000s that helped drive rates of interest decrease worldwide.

“Stablecoins could change into a multitrillion-dollar elephant within the room for central bankers,” Miran warned. “Their progress will increase the provision of loanable funds within the U.S. economic system, putting downward strain on the impartial rate of interest.”

The remarks present how deeply crypto—as soon as dismissed as fringe—is now entangled with core questions of U.S. financial coverage.

CFTC Leadership Shake-Up: Trump’s New Nominee Heads Into Crucial Senate Hearing

In a separate growth, the CFTC is coming into a management transition. President Donald Trump has nominated Michael Selig, a senior SEC official identified for his pro-crypto stance, to function each chairman and commissioner of the CFTC.

Selig, presently chief counsel for the SEC’s Crypto Task Force, is about to face a high-stakes Senate affirmation listening to on November 19. His nomination follows the surprising withdrawal of the administration’s earlier decide, former CFTC Commissioner Brian Quintenz.

The shift comes at a second of institutional turbulence for the company. With the CFTC going through mounting strain to outline its position in regulating digital commodities—and now making ready for a number of the most consequential coverage expansions in its historical past—Selig’s listening to is predicted to attract intense business and political scrutiny.

CFTC Prepares to Approve Leveraged Crypto Trading within the U.S.

Amid its management modifications, the CFTC is concurrently making ready to authorize leveraged spot cryptocurrency buying and selling on regulated U.S. exchanges as early as subsequent month. Acting Chair Caroline Pham confirmed the plans in a publish on X, indicating a serious shift that would carry institutional-grade leveraged merchandise on to American traders.

The talks contain main market operators, together with CME Group, Cboe Futures Exchange, ICE Futures, and crypto-native platforms comparable to Coinbase Derivatives, Kalshi, and Polymarket U.S.

Pham stated the company is utilizing its current rulebook to “swiftly implement suggestions” from the President’s Working Group on Digital Asset Markets whereas Congress continues to debate a broader legislative framework. If finalized, the approval would mark probably the most important advances for the U.S. crypto market infrastructure in years.

Crypto Lawyer John Deaton Launches New Senate Bid

On the political entrance, well-known crypto attorney John Deaton is launching another U.S. Senate run. The pro-XRP lawyer, who beforehand tried to unseat Sen. Elizabeth Warren, has introduced a 2026 marketing campaign—this time focusing on Democrat Sen. Ed Markey of Massachusetts.

Deaton, identified for submitting amicus briefs in main SEC crypto lawsuits, framed his marketing campaign as a combat for “leaders who know the best way to ship outcomes.” The race is about to change into one other flashpoint between crypto advocates and long-time business critics.

Senate Market Structure Bill Would Expand CFTC Power—With Key Gaps

A brand new bipartisan market construction invoice rising from the Senate might reshape digital asset oversight by giving the CFTC sweeping authority over spot digital commodities comparable to Bitcoin and Ether.

The draft, launched by Senate Agriculture Committee Chairman John Boozman (R-AR) and Senator Cory Booker (D-NJ), builds on the House-passed CLARITY Act. It proposes registering centralized platforms as Digital Commodity Exchanges (DCEs) with outlined operational and custody requirements.

However, regardless of its potential to unify the regulatory setting, main gaps stay—together with questions on stablecoins, decentralized finance, and the position of the SEC. With the Senate divided and committee jurisdictions overlapping, the invoice faces a difficult path ahead.

Blockchain Association Praises Progress on Senate Draft

The Blockchain Association welcomed the Agriculture Committee’s draft as a significant milestone. CEO Summer Mersinger, a former CFTC commissioner, stated the proposal represents an “vital step” towards clear guidelines for digital property and praised bipartisan momentum following the House’s progress earlier this 12 months.

The affiliation known as for continued collaboration between the Senate Agriculture and Banking Committees to craft a unified framework able to positioning the U.S. as a world crypto chief.

SEC Considers Establishing a ‘Token Taxonomy’

In a serious coverage shift, SEC Chair Paul Atkins announced he is weighing the creation of a federal “token taxonomy” supposed to make clear which crypto property qualify as securities.

Speaking on the Federal Reserve Bank of Philadelphia’s FinTech Conference, Atkins recommended the taxonomy can be anchored within the Howey Test however tailored to offer larger regulatory certainty.

The proposal marks a departure from the SEC’s years-long reliance on enforcement-driven classification and might point out a larger willingness to work with Congress on structural reform.

Government Shutdown Ends—Easing Pressure on Crypto Policymaking

Finally, President Trump has signed laws formally ending the longest authorities shutdown in U.S. historical past, which lasted 43 days. The reopening could assist restart stalled crypto policymaking, together with appropriations-sensitive regulatory initiatives.

The shutdown’s decision was additionally a victory for Polymarket bettors, most of whom predicted the federal government would reopen between November 12 and 15.

The publish Weekly Crypto Regulation Roundup: Stablecoin Boom, CFTC Power Moves, and Senate Shake-Ups appeared first on Cryptonews.

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