A bipartisan proposal in the U.S. Senate seeks to expand the CFTC's regulatory authority over the cryptocurrency spot market

According to Decrypt, U.S. Senate Agriculture Committee Chairman John Boozman and Senator Cory Booker have released a bipartisan discussion draft that would grant the Commodity Futures Trading Commission (CFTC) explicit regulatory authority over the trading of digital commodity spot markets.

The proposal requires major cryptocurrency spot platforms to register with the CFTC and implement anti-fraud, record-keeping, fund segregation, and dispute resolution measures. Brokers and dealers will follow separate registration rules. The draft explicitly protects the rights to self-custody wallets, allowing individuals to hold and trade digital assets directly through hardware or software wallets.

The draft defines digital commodities as "any fungible digital asset that can be exclusively held and transferred person-to-person without the use of an intermediary and recorded on a cryptographically secure public distributed ledger." The bill will take effect 270 days after enactment and includes a transition period. The timeline for Senate passage remains uncertain.