Jeff Park, Chief Investment Officer of ProCap BTC ($95,785.00), says that recent moves by US regulators signal the Commodity Futures Trading Commission (CFTC) is on the right path to play a dominant role in crypto oversight, and that this shift aligns well with the structure and needs of the evolving crypto markets.

Park’s remarks come amid growing momentum for giving the CFTC more authority over cryptocurrency markets, particularly relative to the Securities and Exchange Commission (SEC).

In a YouTube interview with crypto entrepreneur Anthony Pompliano, Park explained that the futures and commodities watchdog will oversee a larger portion of the crypto space than the SEC. Still, he acknowledged the complexity introduced by various stakeholders.

He commented, “I think that is directionally correct in my opinion. The CFTC is in the business of financial innovation at large, and it is in the business of managing capital efficiency, leverage, and derivatives products,” he said, explaining that aligns with what the crypto industry is building. This new settlement layer brings capital efficiency at different speeds.

Park says the CFTC is suited to regulate cryptocurrencies

Park also claimed it’s reasonable to treat crypto like a commodity, given the world’s wide scope, and he argued that the CFTC’s experience managing international commodities puts it in the best position to regulate. Many in the cryptocurrency sector share this perspective, particularly after the SEC under Biden leaned too heavily on enforcement rather than setting clear guidelines.

Park’s remarks come shortly after Senators John Boozman and Cory Booker released a discussion draft outlining new legislation for the crypto market structure. Their proposal empowers the CFTC to exert greater control over market structure, categorizes most cryptocurrencies as digital commodities, and imposes new registration, disclosure, and fee requirements on companies. 

The Trump administration wants the futures and commodities watchdog to take the lead, but Democrats argue that it lacks the necessary scale to regulate a booming cryptocurrency industry. The Senate’s draft builds on a comparable House measure with the same CFTC-first approach.

Booker commented on the draft, “This discussion draft is a first step, and we still have significant work to do before advancing the legislation out of committee and eventually to the Senate floor. I’m specifically concerned about the lack of resources and the bipartisan commissioners at the CFTC.”

Although he insisted that the CFTC is the proper regulator for spot digital commodities.

The CEO of the Crypto Council for Innovation, Ji Hun Kim, also described the bill as a significant step toward a framework that is fit for purpose for digital commodities markets in the US.

The Boozman draft does not discuss DeFi and AML measures

The Senate draft, however, sidesteps lingering disputes over DeFi and anti-money-laundering rules. DeFi remains a key sticking point, with Democrats advocating for stronger regulation and Republicans supporting little oversight.

Still, Park said that clearer rules should open the door to more innovation in the sector, including new DeFi protocols. Meanwhile, questions continue to swirl over who will ultimately lead the CFTC in the long run.

Senators are scheduled to question Michael Selig next week, who currently works as chief counsel for the SEC’s crypto task force, regarding his nomination to head the CFTC. Since September, the commodity markets regulator has operated with Caroline Pham as its sole commissioner.

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