U.S. Senate Agriculture Committee Releases Draft Crypto Market Structure Bill, Setting Stage for CFTC Oversight

Washington D.C. – In a pivotal development for digital-asset regulation, the United States Senate Committee on Agriculture, Nutrition & Forestry (Senate Ag) formally released a bipartisan draft bill for the cryptocurrency industry’s market structure. This draft legislation, spearheaded by Chair John Boozman (R-AR) and Senator Cory Booker (D-NJ), marks the first major Senate effort to codify how the crypto sector will be regulated, particularly by defining the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). 

Under the draft, digital assets classified as “digital commodities” would fall under CFTC jurisdiction, especially for spot-market trading and exchange activities, while the SEC retains authority over assets that qualify as securities or investment contracts. This proposed division of power has long been sought by the crypto industry as it seeks regulatory clarity. 

Importantly, the draft explicitly seeks to define “ancillary assets”, establish registration paths for trading platforms, impose disclosure and anti-fraud obligations, and clarify the legal treatment of decentralised finance (DeFi) activities and token-issuance frameworks. It also contemplates amendments to federal banking statutes to enable banks to engage in digital-asset services under defined governance and risk-management standards. 

Industry observers note that the timing of the draft following the passage of stablecoin legislation earlier this year signals Congress’s commitment to completing a “crypto regulatory trilogy” that encompasses stablecoins, market structure and digital-asset disclosure regimes. The long-tail keywords “crypto market structure bill draft Senate Agriculture Committee” and “CFTC versus SEC crypto oversight discussion draft 2025” now feature prominently in policy-related search trends. 

The release of this draft is not the end of the legislative process but rather a starting point for negotiation. While the bill enjoys bipartisan backing, key unresolved areas remain, notably around enforcement resources, decentralised custody models and anti-money-laundering provisions for self-custody wallets. The draft currently includes placeholder bracketed sections indicating multiple draft-circulation versions and ongoing discussion. 

For market participants, the implications are significant. A clearer regulatory regime could reduce jurisdictional ambiguity, accelerate institutional participation, and support the development of regulated trading infrastructures and custody solutions. On the other hand, the final terms will influence how DeFi protocols, token projects and emerging digital-asset platforms align with U.S. law. Analysts believe that once finalised, the legislation could enhance investor confidence, attract capital-markets participants and catalyse structural growth in crypto-exchanges, token offerings and blockchain infrastructure. 

However, cautious voices remain. Some stakeholders argue that transferring spot-market oversight to the CFTC without strengthening the agency’s staff and funding could create gaps in investor protection. Others contend that the draft does not fully address consumer safeguards, especially in retail-oriented tokens and platforms. These concerns surface in the long-tail keyword sphere of “crypto regulation financial stability risk Senate bill” and “crypto legislation investor protection unresolved issues 2025.” 

With the draft now public, key next steps include markup by the Senate Committee, alignment with the House-passed CLARITY Act, potential reconciliation of divergent bills and scheduled hearings to gather testimony from industry, regulators and consumer-protection advocates. Timing remains uncertain, though the public draft suggests that legislative action may accelerate before the end of the year. 

FAQs

Q1: What is the draft crypto market structure bill about?
The draft legislation aims to establish clear regulatory boundaries for digital-asset markets by defining the roles of the CFTC and the SEC, setting trading-platform registration rules, issuing disclosure requirements, and updating banking law for crypto services.

Q2: Who sponsored the draft bill?
The draft was released by the Senate Agriculture Committee under Chairman John Boozman (R-AR) and Senator Cory Booker (D-NJ) in a bipartisan effort to finalise crypto-market regulation.

Q3: Which long-tail keywords reflect this development?
Keywords such as “Senate draft crypto market structure bill 2025”, “crypto CFTC oversight discussion draft agriculture committee”, and “digital commodity regulatory framework Senate legislation” are gaining search momentum.

Q4: What remains to be resolved?
Key unresolved areas include enforcement resources for the CFTC, detailed rules for DeFi and self-custody wallets, final definitions of digital-asset categories, and banking-law changes related to crypto services.

Q5: Why does this matter for the crypto industry?
The legislation could significantly reduce regulatory ambiguity, encourage institutional participation, legitimize trading infrastructures and create regulatory certainty for token projects and platforms engaged in the U.S. market.

Q6: What is the expected timeline for passage?
Although the draft signals progress, passage is not imminent. The bill must undergo committee review, possibly be reconciled with House legislation, and pass both chambers. Comments from senators suggest deliberation may continue through year-end.