The U.S. Capitol is depicted in the morning light following the Senate's passage of legislation to reopen the federal government on November 11, 2025, in Washington, DC. This significant news was captured by Win McNamee of Getty Images.
The Senate Agriculture Committee has introduced a landmark draft bill focused on digital assets market structure—a crucial move aimed at boosting the adoption of cryptocurrencies by institutional and retail investors. Announced on Monday by Agriculture Chair John Boozman, R-Ark., and Sen. Cory Booker, D-N.J., the bipartisan draft sets a framework for the regulation of the crypto industry in the United States. It also outlines how institutions can engage with digital assets, ranging from bitcoin and ether to tokenized financial instruments. Cody Carbone, CEO of the Digital Chamber, told CNBC that this draft acts as a definitive guide for institutions looking to incorporate digital assets into their operations, detailing the compliance and regulation requirements necessary for involvement with crypto.
Here are five key takeaways from the discussion draft:
- Grants Favorable Regulatory Status to Some Cryptocurrencies: The draft classifies major digital assets, such as bitcoin and ether, as "digital commodities," assigning them to the Commodity Futures Trading Commission (CFTC) for regulation. Juan Leon, an analyst at Bitwise, highlighted that this move eliminates significant barriers for institutional fiduciaries looking to adopt digital assets.
- Requires Crypto Firms to Segregate Funds and Manage Conflicts of Interest: The draft mandates financial separation among affiliated entities in crypto firms, challenging the "all-in-one" model common in the industry. Such separation aligns these firms more closely with traditional financial practices, enhancing institutional adoption.
- Gives the CFTC More Power to Regulate Digital Assets: The draft increases the CFTC's authority, allowing it to collaborate with the Securities and Exchange Commission on crypto-related regulatory matters, shifting the regulatory balance that has, until now, favored the SEC.
- Allows the CFTC to Collect Fees: Regulated entities would be required to pay fees to the CFTC. These funds would support registering digital commodity exchanges and brokers, besides conducting oversight and outreach activities.
- Establishes Listing Standards for Tokens: The draft insists that crypto exchanges only list digital commodities not readily susceptible to manipulation, aiming to reduce fraud and build market confidence.