New proposal outlines the roles of U.S. financial regulators as lawmakers move closer to defining clear crypto oversight.
The U.S. Senate Agriculture Committee has unveiled a discussion draft for the long-anticipated crypto market structure bill, marking a major step toward establishing how the nation’s two main financial watchdogs will regulate the digital asset industry.
Released on Monday by Senator John Boozman (R-AR) and Senator Cory Booker (D-NJ), the draft seeks to define the respective jurisdictions of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) over crypto assets — a long-debated topic that has fueled uncertainty for both investors and developers.
“The CFTC is the right agency to regulate spot digital commodity trading, and it is essential to establish clear rules for the emerging crypto market while also protecting consumers,” Boozman said in a statement.
Booker added that the proposal “provides the CFTC with new authority to regulate the digital commodity spot market, create new protections for retail customers, and ensure the agency has the resources necessary to oversee this growing market.”
Regulatory Boundaries Still Under Review
The draft bill includes bracketed sections — signaling ongoing negotiations — particularly concerning how decentralized finance (DeFi), blockchain networks, and decentralized autonomous organizations (DAOs) would be treated under the Commodity Exchange Act.
Some committee Democrats have raised concerns about jurisdiction, noting in the draft that the Senate Banking Committee should handle parts of the legislation relating to securities. This highlights the continued overlap between the CFTC’s authority over commodities and the SEC’s jurisdiction over securities.
An excerpt from the draft shows both agencies will likely need to “jointly issue rules regarding digital commodities and securities,” underscoring the collaborative approach Congress hopes to achieve.
Industry Voices Welcome the Move
Crypto industry groups broadly welcomed the release. Ji Hun Kim, CEO of the Crypto Council for Innovation, called the draft a “meaningful step toward establishing a comprehensive, fit-for-purpose market structure framework for digital assets.”
Mason Lynaugh, community director at Stand with Crypto, echoed the sentiment, saying the bill represents “an important step toward formally creating a common-sense regulatory framework the industry has long awaited.”
“The Senate must act quickly and deliberately to pass market structure legislation. Crypto advocates nationwide are counting on clear rules of the road,” Lynaugh emphasized.
With the Senate Agriculture Committee leading the CFTC’s section and the Banking Committee overseeing the SEC-related portions, lawmakers appear closer than ever to resolving crypto’s fragmented regulatory landscape.
If passed, the legislation could set a unified national standard for digital asset oversight — a breakthrough many in the crypto industry have awaited for years.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.