Senate Releases Bipartisan Crypto Regulation Draft

The U.S. Senate Agriculture Committee released a bipartisan draft bill on Monday aimed at establishing clearer regulations for the cryptocurrency industry by granting the Commodity Futures Trading Commission primary authority over digital commodities such as Bitcoin and Ethereum. Led by Committee Chairman John Boozman, a Republican from Arkansas, and Senator Cory Booker, a Democrat from New Jersey, the proposal seeks to resolve longstanding jurisdictional overlaps between the CFTC and the Securities and Exchange Commission, marking a potential turning point for the sector's integration into the broader financial system.

The draft, which builds on the Digital Asset Market Clarity Act passed by the House in July with strong bipartisan support, defines digital commodities and positions the CFTC as the lead regulator for their spot markets, exchanges, and derivatives trading. It requires centralized platforms to register as digital commodity exchanges, adhering to new standards for operations, fund segregation, disclosures, and affiliated trading. To protect retail investors, the bill proposes creating a Digital Commodity Retail Office within the CFTC to promote market transparency...