A New Push Toward Regulatory Clarity
The U.S. Senate Agriculture Committee has released the first public draft of a comprehensive crypto market structure bill, marking a significant step toward establishing clear regulatory boundaries in the digital asset sector. The draft, introduced by Republican Committee Chair John Boozman alongside Democratic Senator Cory Booker, outlines how oversight over crypto will be divided between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). For years, the absence of formal legislation has left crypto companies navigating conflicting regulator interpretations, leading to uncertainty across the industry.
Defining the Role of the CFTC and SEC
The draft reinforces that the CFTC should have authority over the spot digital commodity market, positioning the agency as the primary regulator for non-securities crypto assets.
This marks one of the most direct bipartisan acknowledgments that crypto requires tailored regulatory frameworks, not reinterpretations of decades-old securities law.
Key Definitions Still Under Negotiation
While the draft lays out foundational regulatory boundaries, many sections remain in brackets, signaling ongoing negotiation. The document attempts to define critical terms such as “blockchain” “decentralized finance (DeFi)” and “decentralized autonomous organizations (DAOs)” under the Commodity Exchange Act. However, Democratic committee members have noted that certain components overlap with the jurisdiction of the Senate Banking Committee, which oversees the SEC.
The draft acknowledges a “minority view” indicating that some issues—particularly those affecting developers and blockchain service providers—may require additional collaboration with Banking Committee lawmakers. This reflects the reality that crypto governance spans multiple regulatory domains, and no single committee fully controls the policy landscape.
Alignment With Other Legislative Initiatives
The Agriculture Committee’s work is expected to interlock with parallel legislative drafts, including the Senate Banking Committee’s proposal released in July and the House-passed CLARITY Act, which emphasizes the CFTC’s central role in digital asset regulation. Together, these proposals represent the most coordinated federal effort to date to standardize crypto rules, rather than relying on enforcement-based policymaking.
Industry stakeholders have long argued that regulation through lawsuits slows innovation and drives talent offshore, and they point to this bill as a more stable foundation for the sector’s growth.
Industry Response Reflects Strong Support
Crypto trade organizations and advocacy groups responded positively to the draft’s release.
Meanwhile, Mason Lynaugh, a director at Coinbase’s Stand With Crypto campaign, urged lawmakers to push the bill forward, arguing that “crypto advocates nationwide are counting on their elected officials to create clear rules of the road.”
The tone from industry leaders suggests that market clarity-not deregulation-is the priority, and that modern legal definitions are essential for U.S. competitiveness in global digital asset innovation.
