Senate Draft Bill Proposes CFTC Oversight of Crypto Commodities

The new draft bill on cryptocurrency market structure by the U.S. Senate Agriculture Committee grants the CFTC regulatory oversight of spot market digital asset commodities, excluding payment stablecoins, while the SEC manages digital assets as securities.

Senate Draft Bill Enhances CFTC’s Role in Regulating Crypto Commodities. The legislation could redefine regulation, affecting digital commodities and excluding stablecoins, with market reactions focused on compliance and innovation.

The proposed draft, part of the Clarity Act, seeks to provide the Commodity Futures Trading Commission (CFTC) with clear authority over digital asset commodities. This move comes as the U.S. Senate aims for transparent crypto market structure legislation. The draft excludes payment stablecoins from its commodity definition, placing these under distinct oversight guidelines.

Senators involved include John Boozman and Cory Booker, emphasizing collaborative efforts. Boozman announced a markup vote scheduled for January 27, 2026, stressing transparency and consumer protection. Industry leaders like Brian Armstrong, CEO of Coinbase, have expressed differing views on aspects of regulatory frameworks.

Immediate effects on crypto markets include anticipated shifts in regulatory compliance and increased oversight by the CFTC. The initiative underscores a more structured approach to overseeing cryptocurrencies, especially Bitcoin and other digital asset commodities.

Financial impacts, while currently not detailed, are expected as markets respond to potential changes. Political and business entities are closely watching for shifts in crypto regulations and industry standards.

The draft builds on historical legislation efforts, like the Lummis-Gillibrand Responsible Financial Innovation Act, which sought similar clarity. Potential outcomes include increased security, innovation, and investment within regulated frameworks. These steps align with historical precedents designed to foster cross-agency coherence and comprehensive digital asset oversight, ensuring sustained market evolution.