U.S. Senate Draft Bill Expands CFTC’s Cryptocurrency Oversight

The U.S. Senate Agriculture Committee, led by members including Cory Booker, released a draft bill on November 11th that grants the CFTC new powers over digital commodities.

This draft marks a significant shift, aiming to establish regulatory clarity and consumer protection in U.S. cryptocurrency markets, particularly affecting Bitcoin and Ethereum as commodities.

Senate Offers CFTC Enhanced Crypto Regulatory Powers

The U.S. Senate Agriculture Committee, chaired by John Boozman (R-Ark.) and with Democrat Cory Booker, unveiled a draft bill offering the CFTC enhanced powers over digital commodities like Bitcoin and Ethereum. The proposal, described in a 155-page document, classifies these cryptocurrencies as commodities and not securities.

Bipartisan negotiations continue to resolve details regarding the CFTC’s added responsibilities and potential challenges, including resource allocation. The draft outlines financial provisions aimed at bolstering the CFTC’s regulatory capacity through fees levied on unspecified crypto entities.

Cory Booker, Senator, U.S. Senate Agriculture Committee, “The discussion draft would provide the CFTC with new authority to regulate the digital commodity spot market, create new protections for retail customers, and ensure the agency has the personnel and resources necessary to oversee this growing market.”: Coindesk

Industry figures respond positively, emphasizing clarity and stability. DeFi Education Fund’s Amanda Tuminelli expressed hope for robust developer protections. Market reactions indicate a positive outlook, anticipating reinforced legitimacy for digital commodities.

Crypto Markets Respond to New U.S. Senate Bill

Did you know? In 2021, the Infrastructure Bill incited initial volatility in crypto markets, later stabilizing with increased institutional interest. This pattern may repeat as the U.S. Senate Agricultural Committee’s bill progresses.

According to CoinMarketCap, Bitcoin’s current price is $106,146.52, with a market cap of $2.12 trillion. Its 24-hour trading volume reached $69.69 billion, up 17.66%. The largest cryptocurrency has experienced a 1.36% gain in the past 24 hours but shows a 11.61% decline over 90 days.

Coincu’s research team suggests that the Senate bill’s progress could lead to significant regulatory shifts, enhancing crypto market legitimacy. This development may boost institutional confidence and potentially ease volatility concerns as historical precedents indicate.