Senate Ag Unveils CFTC Crypto Market Structure Draft
The Senate Agriculture Committee has released a bipartisan discussion draft establishing a new crypto market structure. The bill defines “digital commodity” in law and tasks the Commodity Futures Trading Commission (CFTC) with formal oversight of spot trading in crypto assets. It introduces customer protections, including segregated funds, disclosure requirements and self-custody safeguards, and mandates platform registration. The draft also calls for CFTC-SEC collaboration to resolve overlaps and secures dedicated funding for CFTC staff and infrastructure. Building on the House-passed CLARITY Act, it aims to enhance transparency, liquidity and resilience in the crypto market structure. The release coincides with new Treasury and IRS guidelines clarifying staking rules for crypto ETPs, reinforcing regulatory certainty for traders.
Bullish
This draft bill reduces regulatory uncertainty by clearly defining digital commodities and centralizing spot trading oversight under the CFTC while introducing robust consumer protections. Dedicated funding and mandated platform registration signal long-term institutional support. The concurrent Treasury and IRS staking guidelines further solidify rules for crypto ETPs. Together, these measures are likely to boost market confidence and liquidity in both the short and long term, making the overall impact bullish.