The U.S. Senate Agriculture Committee has released a draft version of a bill that would define how cryptocurrency markets are regulated. The proposal focuses on dividing oversight between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), two agencies that have often clashed over crypto regulation.
The bill, published Monday, was led by Committee Chair John Boozman and Senator Cory Booker. It aims to give the CFTC authority over digital asset spot markets while outlining how the agency should coordinate with the SEC on issues related to securities.
The document also defines terms like blockchain, decentralized finance (DeFi), and DAOs. These definitions would be added to the Commodity Exchange Act, which governs U.S. commodity markets.
According to Boozman,
“The CFTC is the right agency to regulate spot digital commodity trading.”
Booker added that the bill would also “create new protections for retail customers” and give the CFTC the resources needed to monitor the market.
Sections Still Unsettled
Many parts of the bill remain incomplete. Text in brackets shows areas where lawmakers haven’t reached agreement. One section, noted as a “minority view,” questions whether the Agriculture Committee has full jurisdiction. Democrats on the panel are seeking to involve the Senate Banking Committee to address issues related to blockchain developers and service providers who don’t control user assets.
Another unfinished section calls for the CFTC and SEC to jointly create rules. These rules would cover areas where digital assets overlap with traditional finance, such as custody and risk margins.
The bill also suggests that the CFTC’s leadership include at least two members from the minority party. Currently, the agency is led by an acting chair, with no confirmed replacements yet for other commissioner roles.
Coordination With Other Committees Expected
The Agriculture Committee handles legislation tied to the CFTC. Meanwhile, the Senate Banking Committee is in charge of the SEC. Each committee is drafting its own version of crypto legislation, but both will need to combine their proposals before a full Senate vote can happen.
A related draft, released by Senate Republicans in July, was built to align with the House’s Clarity Act. That bill positions the CFTC as the lead agency for crypto spot markets. Talks are ongoing to merge the Senate’s two drafts and bring a single proposal to the floor.
Industry Watches as Draft Moves Forward
Groups in the crypto space welcomed the draft’s release but stressed the need for clear rules. Ji Hun Kim, from the Crypto Council for Innovation, said the release was a move toward building a functional legal framework.
Mason Lynaugh, who works with Coinbase’s advocacy arm, said,
“The Senate must act quickly and deliberately to pass market structure legislation.”
He added that crypto supporters across the country are waiting for clear guidance.
Others urged lawmakers to be careful. Amanda Tuminelli of the DeFi Education Fund said,
“We are hoping that the section left open for DeFi will be filled in with robust developer protections.”
She stressed the need to distinguish developers from intermediaries who hold user funds.
Ron Hammond of Wintermute expects committee-level votes before the end of the year. A Senate-wide vote could follow in early 2026, depending on how fast the two bills can be merged.
