Senate Draft Crypto Bill Grants CFTC Greater Oversight

|
Senate Draft Crypto Bill Grants CFTC Greater Oversight

The U.S. Senate’s agricultural panel has unveiled a landmark piece of legislation that could redefine how digital assets are regulated nationwide. 

On Monday, the United States Senate Committee on Agriculture, Nutrition, and Forestry released a bipartisan discussion draft of the Draft Crypto Bill, signaling a major effort to bring clarity and consistency to crypto regulation. 

Spearheaded by Senator John Boozman (R-Ark.), Chair of the Committee, and Senator Cory Booker (D-N.J.), the bill aims to reshape oversight by empowering the Commodity Futures Trading Commission (CFTC). 

It also seeks to refine the role of the Securities and Exchange Commission (SEC). Industry groups and digital-asset advocates have largely welcomed the proposal as a pivotal move toward establishing clearer regulatory ground rules.

What the Draft Crypto Bill Is All About

The proposed legislation, led by Senators Boozman and Booker, builds on prior congressional efforts to create a unified framework for digital assets. Under the draft, most cryptocurrencies would be classified as digital commodities and placed under the CFTC’s jurisdiction. 

This move would give the agency expanded powers to register and supervise digital-asset trading platforms, set disclosure standards, and enforce risk-management safeguards. 

Meanwhile, the SEC would retain oversight of digital securities and maintain its authority to prosecute fraud, manipulation, and investor-protection violations on regulated exchanges.

Republicans on the Senate Banking Committee released a discussion draft of their portion of the legislation in July, signaling their intent to align it with the CLARITY Act. This measure was passed by the House earlier this year that designates the CFTC as the primary regulator for digital commodities. 

The Senate’s new draft seeks to merge these efforts, creating a cohesive framework that consolidates federal oversight of the crypto market under the CFTC’s authority while refining the SEC’s complementary role.

The bill establishes a clear division of labor between the two regulators. The CFTC would oversee spot and derivatives markets for digital commodities, while the SEC would govern assets that meet the definition of a security. 

Platforms that handle both types of assets would need to comply with both regulatory regimes, ensuring greater accountability and consumer protection.

Senator Boozman emphasized that “the CFTC is the right agency to regulate spot digital-commodity trading,” adding that the bill provides a much-needed foundation for safe and transparent crypto markets. 

Senator Booker echoed the sentiment, noting that “more Americans than ever are engaging with new digital financial tools, and Congress must ensure those markets are fair and well-supervised.”

Support for the Crypto Draft Bill

Crypto advocacy groups quickly expressed their support for the draft. Ji Hun Kim, CEO of the Crypto Council for Innovation, said the release of the bill “marks meaningful positive progress toward establishing a comprehensive, fit-for-purpose market structure framework for digital commodities in the U.S.” 

Likewise, Mason Lynaugh, community director at Coinbase’s lobbying arm, Stand with Crypto, described the bill as an “important step toward formally establishing the common-sense regulatory framework” that the crypto industry had long sought.

Impact on the U.S. Crypto Casino Market

The draft bill could have a notable impact on the U.S. crypto casino industry, which increasingly uses digital tokens for gaming, payments, and rewards. 

If the legislation passes, tokens used by these casinos may fall under CFTC oversight as digital commodities, subjecting platforms to new registration, disclosure, and capital-reserve rules. Such requirements would increase compliance costs but could also enhance credibility and consumer trust.

For platforms whose tokens resemble securities, the SEC’s jurisdiction would trigger stricter obligations, including investor-protection disclosures and registration mandates. These changes might lead some U.S. crypto casinos to restrict domestic access or restructure their token ecosystems to remain compliant. 

However, clearer rules could also attract institutional investment and foster a more stable, regulated environment for crypto-based gaming.

Overall, the Draft Crypto Bill represents a turning point for the sector. By delineating regulatory boundaries and strengthening oversight, lawmakers hope to balance innovation with consumer protection.

This approach could legitimize the broader crypto economy, including U.S. crypto casinos. As congressional debate unfolds, all eyes in the digital-asset industry will remain on how the bill evolves and when it might finally become law.