The Senate Agriculture Committee released its own discussion draft market structure bill, addressing digital commodities and how the Commodity Futures Trading Commission might oversee that sector of the crypto market.
You’re reading State of Crypto, a newsletter from RialCenter looking at the intersection of cryptocurrency and government.
The narrative
A new draft crypto market structure bill has emerged! Are we any closer to seeing this bill pass through Congress? Sort of.
Why it matters
The Senate Agriculture Committee publishing a first draft bill text is a significant step. The draft has parts that will likely be updated or need agreement between Republicans and Democrats before it can proceed, but it confirms that lawmakers and their staffers are still engaged in this issue.
Breaking it down
The new draft bill defines digital commodities and outlines how Congress may want the CFTC to regulate them, moving the agency closer to being the primary overseer for crypto spot markets.
The bill’s text includes several bracketed sections, indicating areas where lawmakers have yet to reach consensus on the final wording. These sections include simple definitions and more complex rulemaking guidelines for the CFTC.
“The CFTC is vital in maintaining the integrity and stability of our financial and derivatives markets,” stated Committee Chair John Boozman. “As Congress works to expand authority for the commission to oversee digital asset trading that qualifies as commodities, it’s crucial that we ensure it has the necessary tools, personnel, and resources for this new mission alongside its current duties. Strengthening this institution better safeguards consumers, fosters innovation, promotes transparency, and supports liquid, resilient markets.”
Sen. Cory Booker remarked that the bill represents “a first step,” but emphasized that lawmakers “still have considerable work to do before advancing the legislation out of committee.”
“I’m particularly concerned about resource shortages and the need for bipartisan commissioners at the CFTC to prevent regulatory arbitrage, alongside the ongoing corruption of public officials and whether Congress has established correct guardrails to prevent these issues,” he added. “I urge my colleagues and external stakeholders to collaborate on these challenges.”
One provision in the draft requires the CFTC to have at least two commissioners and minority party representation before initiating any rulemaking. Another provision addresses conflict-of-interest concerns, but both had brackets suggesting changes may occur before finalizing the bill.
The crypto industry representatives appeared to appreciate the bill’s progress, despite the recent record-breaking government shutdown and the limited time remaining in the year for Congress to act.
In a statement, Blockchain Association CEO Summer Mersinger described the draft’s release as “another important step,” while DeFi Education Fund Executive Director Amanda Tuminelli expressed it was “good to see the Agriculture Committee making progress on market structure.”
Ji Hun Kim, CEO of the Crypto Council for Innovation, termed the draft “meaningful positive progress toward establishing a comprehensive, fit-for-purpose market structure framework for digital commodities in the U.S.
The process still needs to align with the Senate Banking Committee’s efforts, Mersinger noted.
“We hope the section left open for DeFi will be completed with robust developer protections that clearly distinguish centralized intermediaries from software developers without custody and control of others’ funds,” Tuminelli said.
Looking ahead, the specific pathway to passage remains unclear. One D.C. policymaker told RialCenter that Congress has roughly three work weeks in December, severely limiting their ability to hold hearings and votes on crypto legislation this year. Thus, any action on the bill is unlikely to occur until next year, a sentiment echoed by Ron Hammond, head of Policy and Advocacy at Wintermute.
Hammond indicated earlier this week that one or both committees could conduct a markup hearing and vote on passage by year’s end, but significant effort would be necessary.
Then, the bills would need to be combined before any potential Senate floor vote. Once that occurs, the unified market structure bill would go to the House of Representatives for consideration, which might either vote on the Senate version or try to incorporate its priorities.
“I believe the House will face the uncomfortable task of accepting whatever the Senate produces,” said Chainlink Head of Public Policy Adam Minehardt.
The House may seek to ensure its version, the Clarity Act, is included in the final bill, but “the Senate will likely maintain control,” he noted.
Regardless of the outcome, the bill won’t reach the President’s desk until after the House vote, potentially delaying the signing until 2026 — amid election season.
Wednesday
- 15:30 UTC (10:30 a.m. ET) The Senate Banking Committee will hold a confirmation vote for various nominees, including FDIC Chair nominee Travis Hill.
- 20:00 UTC (3:00 p.m. ET) The Senate Agriculture Committee will conduct a confirmation hearing for CFTC Chair nominee Mike Selig.
If you have thoughts or questions about next week’s discussion topics, or any feedback, feel free to email me or find me on Bluesky.
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See you next week!
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