The U.S. Senate Agriculture Committee has released a long-awaited draft bill aimed at regulating cryptocurrencies and digital commodities under federal law.
The proposal, jointly introduced by Senator John Boozman (R–Arkansas) and Senator Cory Booker (D–New Jersey), marks a major step toward establishing a comprehensive framework for digital assets, including Bitcoin and Ether.
The draft bill seeks to resolve years of regulatory uncertainty by clarifying the roles of federal agencies in overseeing the crypto market. It grants the Commodity Futures Trading Commission (CFTC) expanded authority over digital commodity trading, aligning parts of the cryptocurrency sector with traditional commodities supervision.
Senator Boozman described the proposal as a crucial measure to ensure fairness and transparency while protecting consumers, noting it “lays an important marker as we work toward final policy language.”
Senator Booker emphasised the need to safeguard Americans as digital financial tools gain popularity. The draft includes multiple investor protection measures, such as: Segregation of customer funds on crypto platforms, clear disclosure of investment risks, rules to prevent conflicts of interest and limit related-party trading, provisions to strengthen market liquidity and stability.
A key feature of the proposal is its call for cooperation between the CFTC and the Securities and Exchange Commission (SEC), encouraging coordination on overlapping jurisdictions and policy implementation.
The bill also supports self-custody rights and emerging blockchain technologies while providing funding for the CFTC’s expanded oversight responsibilities.
Despite its progress, the bill remains incomplete. Critical elements, including the precise definition of “digital commodity” and the full scope of the CFTC’s authority, are still under negotiation.
The Senate Banking Committee, which oversees securities regulation, must integrate its draft before a unified bill can move forward, a process that could take several months.
The draft instructs the CFTC to establish conflict-of-interest rules for firms that operate both trading platforms and market-making services within 18 months.
The goal is to prevent vertically integrated structures from gaining unfair advantages and to maintain regulatory fairness.
Source: News.Ng
