TLDR
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Senator Cynthia Lummis and CFTC Chair Selig pledged to advance the stalled crypto bill after a two-day meeting.
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The proposed framework would give the CFTC exclusive oversight of Bitcoin and Ethereum on mature blockchains.
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The SEC would retain authority over tokenized securities and early-stage token offerings under the plan.
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The bill defines maturity as functional, open source, and decentralized networks with no entity holding over 20 percent of tokens.
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The House passed the legislation with a 294 to 134 vote, while the Senate has yet to hold a final vote.
Senator Cynthia Lummis and CFTC Chair Selig moved to revive a stalled federal crypto framework this week. Both sides left a two-day meeting pledging to “get the bill across the finish line.” Lawmakers now weigh jurisdictional changes, tax relief, and market structure updates as Senate talks continue.
Lawmakers Renew Effort to Move Crypto Bill Forward
Lummis met Selig in Washington to coordinate support for the pending crypto bill. Both officials stressed urgency and committed to advancing the legislation. Selig acknowledged the “urgency of this moment” during the discussions.
The meeting focused on building a clear token taxonomy for digital assets. Lawmakers aim to separate digital commodities from securities through statute. The industry has long urged Congress to resolve this dispute through legislation.
Great meeting with CFTC Chairman Michael Selig to discuss digital asset market structure. @ChairmanSelig understands the urgency of this moment, and I look forward to continued collaboration as we work to integrate digital assets into the 21st century financial system. pic.twitter.com/Pc68izvqlK
— Senator Cynthia Lummis (@SenLummis) March 5, 2026
Under the proposed framework, the CFTC would oversee digital commodities on mature blockchains. Bitcoin and Ethereum would fall under CFTC authority once networks meet maturity standards. The SEC would continue to regulate tokenized securities and early capital raises.
A project would qualify as mature once it becomes functional and open-source. The framework also requires decentralization with no entity controlling more than 20% of tokens. Once certified, oversight would shift from the SEC to the CFTC.
The House passed the bill last July with a 294–134 vote. However, the Senate has not yet scheduled a final vote. Lawmakers continue negotiations as committee leaders review revisions.
Bitcoin and Ethereum Jurisdiction Under Proposed Framework
The proposal grants the CFTC exclusive jurisdiction over Bitcoin and Ethereum on qualifying blockchains. Lawmakers describe these assets as digital commodities once decentralization thresholds apply. The framework would move oversight away from securities laws after certification.
The SEC would retain authority over tokenized equities and early-stage token offerings. Projects seeking capital would remain subject to securities registration requirements. Oversight would transition only after networks meet maturity conditions.
Senator Lummis also promotes a $300 de minimis tax exemption for small transactions. The measure targets routine purchases such as retail payments. Current tax law treats each crypto transaction as a taxable event.
President Donald Trump has publicly urged Congress to pass the bill. He accused banks of resisting crypto reforms to protect their margins. His comments increased political attention on the pending legislation.
Prediction markets have tracked shifting expectations for Senate approval. Kalshi and Polymarket once placed passage odds near 85% before June 2026. Those estimates later moved to a 50–70% range after delays.
Ripple CEO Brad Garlinghouse estimated 80–90% odds by late April. He cited renewed momentum in Washington during public remarks. Lawmakers have not confirmed a final vote date.
The CFTC and SEC continue joint coordination through Project Crypto. The initiative seeks to harmonize standards and present a unified federal approach. Selig also announced plans to allow regulated perpetual futures trading domestically.
