Bipartisan Senate draft puts CFTC in lead on crypto markets

The proposal would classify most tokens as digital commodities and transfer key market-structure duties from the Securities and Exchange Commission.

The draft assigns the CFTC responsibility for market rules, requires firms to register certain activities, sets new disclosure standards, and authorizes the agency to collect fees on some transactions. The sponsors described the text as an opening bid, with negotiations expected before any committee action.

Because the CFTC falls under the Senate Agriculture Committee, the bill must advance through that panel and the Senate Banking Committee. Banking Chair Tim Scott welcomed the release, and Republicans on his committee outlined their portion of market-structure legislation in July as talks with Democrats continue.

The Agriculture Committee had not scheduled a hearing or markup as of Nov. 10, 2025. Booker called the document a first step and flagged concerns about the CFTC’s capacity. “This discussion draft is a first step, and we still have significant work to do before advancing the legislation out of committee and eventually to the Senate floor,” he stated, adding, “I’m specifically concerned about the lack of resources and the bipartisan commissioners at the CFTC.”

Governance and staffing are addressed in the draft. The CFTC, a five‑member bipartisan commission, is currently led by Acting Chair Caroline Pham after a string of resignations; additional nominees are pending confirmation. The proposal would guarantee Democratic input on at least two nominees and directs that the agency be appropriately staffed with expertise and enforcement readiness. Pham is expected to depart once President Donald Trump’s nominee for chair, Mike Selig, is confirmed.

Several policy questions remain unresolved. The text leaves open how to treat decentralized finance and anti–money-laundering rules. Some Democrats advocate tighter oversight, while industry groups and most Republicans argue for a lighter touch. Crypto executives visited Capitol Hill in late October to discuss DeFi and money-laundering provisions with Democratic senators.

Industry groups welcomed the direction of the Senate draft. “The release of the Senate Agriculture Committee’s bipartisan discussion draft bill marks meaningful positive progress toward establishing a comprehensive, fit-for-purpose market structure framework for digital commodities in the US,” noted Ji Hun Kim, chief executive of the Crypto Council for Innovation.

Political math underscores the challenge. Even if every Republican backs the package, at least seven Democratic votes are needed to overcome a filibuster. The House passed a related market-structure bill earlier this year with support from more than 70 Democrats.

As GNcrypto wrote previously, Florida advanced HB 183 to allow up to 10% of certain state and pension funds to hold digital assets and crypto ETPs, and HB 175 to exempt recognized payment stablecoin issuers with 1:1 cash or Treasury reserves and monthly attestations from duplicative state licensing. Other states, including New Hampshire, Texas and Arizona, adopted reserve frameworks, while California updated unclaimed crypto rules.