Senate Agriculture Committee Unveils Crypto Regulatory Draft
The U.S. Senate Agriculture Committee released a draft bill to regulate cryptocurrencies on Monday. The proposal was introduced by Republican Senator John Boozman of Arkansas and Democratic Senator Cory Booker of New Jersey. It aims to create a federal framework for digital assets like Bitcoin and Ether.
The draft expands the Commodity Futures Trading Commission’s (CFTC) authority over digital commodities trading. This would place parts of the crypto market under the CFTC, the agency that oversees other commodities. The bill seeks to clarify whether cryptocurrencies should be treated as securities or commodities.
Senator Boozman said, “The CFTC is the right agency to regulate spot digital commodity trading. It is essential to establish clear rules for the emerging crypto market while protecting consumers.” Senator Booker added that Congress must protect users from scams without restricting innovation.
The draft includes consumer protections such as separating customer funds, avoiding conflicts of interest, clear disclosures, and limits on related-party trading. It also aims to improve market liquidity and resilience while safeguarding retail investors. The bill encourages coordination between the CFTC and the Securities and Exchange Commission (SEC). It also supports self-custody, new technologies, and provides funding for the CFTC’s expanded role.
Ongoing Negotiations and Coordination Needed
This bipartisan draft is one part of wider legislation. The Senate Banking Committee handles digital securities. Both committees must combine their proposals before a full bill advances.
Many sections remain incomplete. Key terms like “digital commodity” are still being debated. Lawmakers have not yet agreed on how the CFTC should work with the SEC, which currently regulates much of the crypto market.
Concerns Over CFTC Leadership and Conflicts of Interest
The draft notes leadership issues at the CFTC. Currently, the agency has only one member, acting Chair Caroline Pham. President Trump has nominated Mike Selig, a crypto regulator at the SEC, to lead the CFTC. However, no other commissioners have been appointed, leaving the agency understaffed as it prepares for more duties.
The bill mandates the CFTC to set rules within 18 months to handle conflicts of interest for traders and regulators. This specifically covers those involved in trading platforms and market-making to ensure fairness and transparency.
Senator Booker has called on the White House to appoint more commissioners from both parties. He warned that a lack of balance could weaken oversight. Democrats have also expressed concern over the Trump family’s growing ties to the crypto industry, including the president’s own “memecoin.”
While the bill lacks final wording, it shows the Senate’s move toward clearer crypto rules. Unresolved political and technical details mean it may take months before a complete law is ready.
