The U.S. Senate Agriculture Committee has unveiled a comprehensive draft bill for cryptocurrency regulation, aiming to significantly expand the authority of the Commodity Futures Trading Commission (CFTC) while addressing potential conflicts of interest, including those linked to the family of former President Donald Trump.
The 155-page document, released Monday, seeks to establish a formal regulatory framework for digital assets. It grants the CFTC primary oversight over “digital commodities,” defining fungible digital assets as those transferable directly between individuals on a secure public blockchain.
Authored by Senators John Boozman, a Republican from Arkansas, and Cory Booker, a Democrat from New Jersey, the bipartisan proposal seeks to protect consumers and prevent market exploitation.
Crucially, the draft bill includes specific language to address conflicts of interest involving public officials and their families. This provision comes amidst estimates that former President Trump’s family has accrued approximately $620 million from various crypto ventures, according to Bloomberg.
These ventures include the World Liberty Financial decentralized finance project and stablecoin, co-founded by Trump and his three children. The family also holds a 20% stake in American Bitcoin, a mining company. Concerns have also been raised regarding the TRUMP and MELANIA tokens.
Senator Booker emphasized the increasing participation of Americans in innovative financial markets, underscoring the need for reinforced regulatory frameworks to maintain market security and prevent bad actors from exploiting legal loopholes.
The draft builds on progress made by the House of Representatives, which passed its own “Digital Asset Market Clarity Act” in July to establish clear industry rules. Separately, the Senate Banking Committee is also developing legislation to clarify jurisdiction between the CFTC and the Securities and Exchange Commission (SEC), introducing the term “ancillary assets.”
Concerns persist regarding the CFTC’s capacity to handle its expanded jurisdiction. The agency currently employs 543 full-time staff compared to the SEC’s 4,200, raising questions among legislators about its funding.
Booker voiced apprehension about the agency’s limited resources, its bipartisan structure, risks of regulatory arbitrage, and potential corruption among officials, questioning whether Congress has established adequate safeguards.
To address funding, the draft proposes a new revenue stream for the CFTC through fees levied on unspecified crypto ecosystem entities.
The bill is not final; several highlighted sections indicate unresolved bipartisan issues that require further negotiation in Congress.
Ji Hun Kim, CEO of the Crypto Council for Innovation, praised the draft as a “positive and significant step forward.” Kim stated that the dynamic continues to advance toward a framework of “clear, risk-based rules that promote innovation, protect consumers, and strengthen America’s competitiveness.”
The legislation awaits debate and anticipated amendments before its formal presentation, marking a new step toward creating a comprehensive regulatory framework for the U.S. crypto industry.