The Commodity Futures Trading Commission is facing renewed scrutiny over whether it can police digital asset markets as Congress weighs the CLARITY Act, a bill that would expand the agency’s authority over crypto.

Brookings fellow Aaron Klein said the CFTC was originally designed to oversee commodity futures markets, not the larger digital asset responsibilities now being considered by lawmakers, according to CoinDesk.

He warned that giving the agency broader powers without additional staff, funding, and expertise could create the appearance of regulation without meaningful oversight.

Klein said the debate over the CLARITY Act is becoming a debate over regulatory capacity. He argued that assigning major responsibilities across multiple agencies can create delays and confusion, citing lessons from the Dodd Frank era.

The comments come as lawmakers consider a market structure framework that would make the CFTC a central regulator for digital asset markets. Klein warned that fragmented oversight could repeat past regulatory failures if agencies lack the resources or will to enforce the rules.

Klein also raised concerns over regulatory independence, saying enforcement decisions should not be influenced by political relationships. He argued that regulators need stronger accountability and greater protection from political pressure.

He said closer coordination between US market regulators is needed, noting that the country is unusual in maintaining separate capital markets regulators through the SEC and CFTC.

Klein said merging the agencies could make sense in the long term, though he expressed skepticism that Congress would pursue that path.

In the meantime, Klein said practical coordination between the SEC and CFTC would matter more than formal agreements. He praised reports that staff from both agencies may share office space, arguing that physical proximity can improve cooperation better than memorandums of understanding.