US Crypto Bill to Define Digital Commodities vs Securities
A bipartisan US crypto bill drafted by Senators John Boozman and Cory Booker aims to resolve the long-standing classification debate between commodities and securities. The proposal establishes “digital commodities” such as Bitcoin and Ether under Commodity Futures Trading Commission (CFTC) oversight, while leaving other tokens—like governance and utility tokens—subject to Securities and Exchange Commission (SEC) review. By clearly defining a digital commodity and assigning regulatory power, the US crypto bill promises greater market certainty, stronger consumer protections and reduced legal risks. Key measures include segregating exchange functions, banning conflicts of interest, stricter listing standards and mandatory disclosures. Institutional investors could gain confidence to enter the market, while retail traders may benefit from lower fraud risks. The enhanced regulatory clarity offered by this US crypto bill is expected to boost institutional adoption, increase trading volumes and support a more mature digital‐asset ecosystem.
Bullish
Clear classification and regulatory certainty from the US crypto bill will likely encourage institutional investors to allocate more capital to digital assets. Assigning Bitcoin and Ether as digital commodities under the CFTC reduces legal ambiguities and limits unexpected SEC enforcement actions. Past regulatory clarifications—such as the EU’s MiCA framework—spurred market growth and business relocation to clear jurisdictions. In the short term, traders could see increased trading volumes in major commodities like BTC and ETH. Over the long term, a structured regulatory environment can attract new financial products, drive derivative activity and support sustained market expansion.