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The US Senate Agriculture Committee has unveiled its eagerly anticipated discussion draft of cryptocurrency market structure regulations, moving Congress closer to enacting laws that delineate the oversight of the crypto industry.
Republican Agriculture Chairman John Boozman and Democrat Senator Cory Booker issued the draft on Monday, which features brackets around areas of the proposed legislation that lawmakers are still deliberating.
The legislation intends to clarify the limits of the Commodity Futures Trading Commission and the Securities and Exchange Commission’s authority over crypto regulation. Only Congress has the power to determine the regulatory scope of these agencies, both of which have informally guided companies regarding crypto in light of the Trump administration’s deregulation efforts.
“The CFTC is the appropriate agency to supervise spot digital commodity trading, and it is crucial to establish clear regulations for the nascent crypto market while safeguarding consumers,” Boozman remarked.
Booker expressed that the discussion draft “would grant the CFTC new authority to oversee the digital commodity spot market, institute fresh protections for retail customers, and ensure the agency possesses the staff and resources needed to monitor this expanding market.”
Sections of the crypto bill still open for modification
The draft legislation describes standard crypto terminology such as “blockchain,” “decentralized finance,” and decentralized autonomous organizations and how they would be governed under the Commodity Exchange Act.
Much of the document is highlighted in brackets, signaling that it is open to amendments. One segment of the text notes the “minority opinion” — held by the Democrats in the committee — who argue that the Agriculture Committee lacks jurisdiction over specific elements and are eager to collaborate with the Senate Banking Committee to “address matters regarding noncontrolling blockchain developers and providers of blockchain services.”
The Agriculture Committee is responsible for overseeing the CFTC, and the Senate Banking Committee is steering portions of the bill related to securities regulations as it supervises the SEC.
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Republicans on the Banking Committee unveiled a discussion draft regarding their section of the bill in July and indicated it would integrate with the CLARITY Act, which the House approved in July, assigning the CFTC a pivotal role in crypto regulation.
Crypto organizations support advancement
Ji Hun Kim, the CEO of the crypto advocacy group the Crypto Council for Innovation, stated that the publication of the draft bill “signifies significant positive advancement towards creating a comprehensive, suitable market structure framework for digital commodities in the US.”
Mason Lynaugh, a community director at Coinbase’s lobbying body, Stand with Crypto, remarked that the bill is a “crucial step towards formally establishing the sensible regulatory framework” that the crypto sector has advocated for.
“The Senate needs to act swiftly and purposefully to pass market structure legislation,” he emphasized. “Crypto advocates nationwide are relying on their elected representatives to set forth clear guidelines.”
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