Senate Committee Unveils Draft Bill to Streamline U.S. Crypto Market Regulation

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The morning after the Senate approved legislation to reopen the federal government, a draft bill focused on digital assets was released by the Senate Agriculture Committee, marking a significant step towards the widespread acceptance of cryptocurrencies both institutionally and retail-wise. On November 11, 2025, Agriculture Chair John Boozman (R-Ark.) and Sen. Cory Booker (D-N.J.) introduced this bipartisan draft which is crucial in laying down the regulatory framework for the U.S. crypto industry.

This legislative proposal outlines the foundational guidelines for entities seeking to incorporate digital assets—ranging from bitcoin and ether to tokenized financial instruments—into their operations. Cody Carbone, CEO of Digital Chamber, referred to it as a 'consequential roadmap' providing detailed compliance requirements necessary for institutionally embracing cryptocurrencies.

Five Key Points from the Draft

1. Favorable Regulatory Status for Major Cryptocurrencies: The draft designates significant digital currencies like bitcoin and ether as 'digital commodities,' falling under the Commodity Futures Trading Commission's oversight. According to Juan Leon of Bitwise, this classification removes a major hurdle for institutional adoption, offering the legal certainty required for including these assets in strategic portfolios. This move is expected to differentiate the market into regulated and unregulated segments, with the former attracting considerable institutional investment.
2. Separation of Funds and Management: One of the draft's provisions demands that crypto firms segregate their governance, personnel, and financial resources among different regulated entities, challenging the prevalent 'all-in-one' business models of many crypto exchanges. By necessitating separation akin to traditional financial companies, the bill significantly supports institutional adoption.
3. Enhances CFTC's Regulatory Authority: The legislation aims to empower the CFTC by increasing its regulatory jurisdiction, allowing it to collaborate closely with the Securities and Exchange Commission on developing crypto-related regulations. This shift in authority marks a notable development in the oversight dynamics of digital assets.
4. Fee Collection for CFTC: Under the draft, entities would be required to pay fees to the CFTC to support the registration of digital commodity exchanges, brokers, and dealers, as well as in executing oversight and educational outreach.
5. Token Listing Standards: The draft proposes strict listing standards for crypto exchanges, permitting trading of digital commodities only if they are not easily manipulated. This aims to curtail fraud in the industry, bringing about higher standards and investor confidence.