The U.S. Senate Agriculture Committee's cryptocurrency bill grants new powers to the CFTC, but key issues remain unresolved

According to The Block, the U.S. Senate Agriculture Committee has released a draft legislation for regulating the cryptocurrency industry, granting new powers to the CFTC.

Previously, the House had passed the Digital Asset Market Transparency Act in July, and the Senate subsequently began drafting its own related legislation. The draft proposed by the Republican-led Senate Banking Committee aims to delineate the jurisdiction between the SEC and the CFTC, introducing the new concept of "ancillary assets" to clarify which cryptocurrencies do not fall under the category of securities. Given that the Senate Agriculture Committee has jurisdiction over the CFTC, the draft it proposed is particularly crucial. This 155-page draft defines digital commodities and establishes a regulatory framework for the CFTC.

Draft author Cory Booker stated that more work needs to be done, particularly concerning concerns about CFTC's insufficient resources and potential regulatory arbitrage due to bipartisan committee issues, as well as issues related to public corruption and the adequacy of regulatory measures. The Agriculture Committee's draft provides new funding sources for the CFTC, indicating that the CFTC should charge unspecified cryptocurrency entities. The parentheses in the draft reflect "unresolved issues" that still need to be negotiated by both sides. Additionally, Democrats face obstacles related to conflicts of interest in Trump's cryptocurrency business, and the Agriculture Committee's draft already includes provisions regarding conflicts of interest.