America Moves Closer to Clear Crypto Rules as CFTC Takes Center Stage

The U.S. Senate has introduced its first comprehensive framework to regulate the crypto market, granting the CFTC authority over spot trading and establishing clearer boundaries with the SEC in a bipartisan effort to modernize digital asset oversight.

A Turning Point in America’s Crypto Regulation

On November 11, the U.S. Senate Committee on Agriculture officially released a draft framework for crypto market regulation, marking a pivotal step toward defining oversight boundaries between two of the country’s most powerful financial agencies — the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

The Digital Commodity Market Structure Bill was introduced by Senator John Boozman (R–Arkansas) and Senator Cory Booker (D–New Jersey), both influential figures in agricultural and financial policy.
The proposal represents a rare bipartisan collaboration, signaling a shared determination among lawmakers to establish a clear and unified legal foundation for the rapidly expanding digital asset market — one that has long outgrown traditional regulatory frameworks.

Empowering the CFTC to Oversee Spot Crypto Trading

The draft legislation aims to grant the CFTC direct authority over spot trading of digital commodities, while also delineating its jurisdiction from that of the SEC.
Under the proposal, the CFTC would oversee “digital commodities” — cryptocurrencies that operate on public blockchains, can be traded peer-to-peer without intermediaries, and are not classified as securities. Examples include Bitcoin (BTC), Litecoin (LTC), and other Proof-of-Work-based tokens.

This approach seeks to resolve the long-standing turf war between the two agencies.
While the SEC has consistently argued that most tokens qualify as securities and therefore fall under its purview, the CFTC has maintained that many digital assets function more like commodities than investment contracts.

Senator John Boozman emphasized the urgency of regulatory clarity, stating:

“The CFTC is the most appropriate agency to regulate crypto commodity markets. Congress must act now to provide clear rules, protect consumers, and encourage responsible innovation.”

Meanwhile, Senator Cory Booker highlighted that the bill gives the CFTC new authority to supervise the spot crypto market, implement investor protection mechanisms, and ensure the agency is adequately funded and staffed to keep pace with industry growth.

A Step Toward a Unified U.S. Digital Asset Framework

The Agriculture Committee’s draft builds upon — and expands — the “Clarity for Digital Tokens Act” passed by the U.S. House in July.
At the same time, the Senate Banking Committee is developing a parallel bill addressing digital securities, with the goal of merging both efforts into a single comprehensive package tentatively titled the “Digital Asset Market Structure Act.”

If enacted, this combined legislation would create the first unified regulatory architecture for digital assets in the United States, covering both commodities and securities under complementary jurisdictions.

Unresolved Issues and Political Tensions

Despite its progress, the 155-page draft still contains numerous bracketed sections, signaling unresolved disputes between the two parties.
Key points of contention include:

Jurisdictional Boundaries: Determining where the SEC’s authority ends and the CFTC’s begins, particularly regarding hybrid assets that may exhibit both commodity and security characteristics.

CFTC Funding Model: The draft proposes allowing the agency to collect fees directly from licensed crypto entities to cover operational costs — a controversial move given the CFTC’s current staffing of only 543 employees compared to the SEC’s 4,200.

Conflict-of-Interest Concerns: Some Democratic lawmakers have raised questions over former President Donald Trump’s financial ties to crypto ventures, including World Liberty Financial (a DeFi and stablecoin project) and American Bitcoin Mining, which Bloomberg estimates generated over USD 620 million in revenue for his business network.

These disputes underscore how politically sensitive crypto regulation remains in Washington, even as both parties acknowledge the need for clearer rules.

Potential Impact on the U.S. Crypto Market

If passed, the bill would mark a historic shift in how the United States governs digital assets — effectively legalizing spot crypto trading under CFTC supervision for the first time.
Such clarity could end years of regulatory uncertainty that have driven innovation and capital offshore.

Under the proposed framework, crypto exchanges and token issuers would operate under a transparent licensing and compliance regime, replacing the current “gray zone” environment that has plagued the industry.
Investors would benefit from enhanced consumer protections and reduced exposure to fraud and manipulation, especially from unregulated offshore platforms.

The CFTC has also hinted at upcoming initiatives to introduce leveraged spot trading mechanisms in partnership with licensed exchanges as early as December — a move that could legitimize onshore crypto activity and strengthen institutional participation.

Market observers say this could attract major institutional capital currently sitting on the sidelines due to regulatory risk, positioning the U.S. once again as a leading global hub for digital finance.

Challenges Ahead

Despite broad industry support, the bill still faces a complex legislative path.
It must pass through both chambers of Congress — a process that could be delayed by political negotiations, competing legislative priorities, and election-year dynamics.

Moreover, even if enacted, regulators will need to develop detailed rulebooks on issues such as token classification, custody requirements, and capital standards, areas that could take months or even years to finalize.

Still, experts argue that the introduction of this bipartisan draft is a major milestone, reflecting how far U.S. policymakers have come from early skepticism toward crypto to a more structured and pragmatic regulatory approach.

Outlook: Toward a Clearer Future for Digital Assets

The unveiling of this Senate draft signals a decisive step toward mainstream integration of digital assets within the U.S. financial system.
By assigning clearer responsibilities between the SEC and CFTC, lawmakers are aiming to protect consumers without stifling innovation — a balance many other jurisdictions, including the EU and Singapore, have already pursued.

If Washington successfully harmonizes oversight and provides stable rules of engagement, the U.S. could reclaim its leadership role in the global digital economy, attracting both institutional investors and responsible crypto innovators back to its markets.

FAQs

1. What does the new Senate bill aim to achieve?
→ It seeks to define regulatory boundaries between the SEC and CFTC, granting the latter authority over spot crypto trading while clarifying how digital assets are classified.

2. Why is CFTC’s role significant in the bill?
→ The bill empowers the CFTC to directly oversee trading and compliance for crypto assets deemed commodities, ensuring stronger consumer protections and market integrity.

3. How could this legislation impact the U.S. crypto industry?
→ It could bring regulatory certainty, attract institutional investors, and reduce market manipulation by integrating digital assets into the existing financial framework.

4. When might the bill become law?
→ The proposal is still in its early stages. Lawmakers expect extended debate and revisions, but bipartisan support suggests progress could accelerate in early 2026.