Everything You Need to Know About the New Draft Crypto Market Structure Bill

The US Senate Agriculture Committee released the crypto market structure draft bill. The crypto regulation will give more control to the Commodity Futures Trading Commission (CFTC) over the Securities and Exchange Commission (SEC), offering clarity on digital asset oversight.

Senate’s Draft Bill for Crypto Market Structure Legislation

The U.S. Senate Committee on Agriculture, Nutrition, and Forestry today released a bipartisan draft bill of the Crypto Asset Market Clarity Act. Led by Chairman John Boozman (R-AR) and Ranking Member Cory Booker (D-NJ), the bill outlines a crypto regulation framework, putting “digital commodities” under the Commodity Futures Trading Commission (CFTC).

Primarily, the draft bill amends the Commodity Exchange Act to provide clear rules for digital asset commodities, such as spot market trading of Bitcoin. In contrast, the SEC will oversee digital assets deemed as securities.

Boozman hailed it as a “bipartisan breakthrough” to “provide certainty for innovators and investors,” while Booker emphasized consumer safeguards. The bill is in a discussion draft phase, with final status still awaited on topics like DeFi exemptions and privacy coin handling.

Commenting on the section left blank for DeFi, Amanda Tuminelli, executive director of DeFi Education Fund, said:

It is good to see the Ag Committee make progress on market structure and release a bipartisan draft. We are hoping that the section left open for DeFi will be filled in with robust developer protections that clearly distinguish centralized intermediaries from software developers without custody and control of other people’s money.

Core Aspects of the Digital Asset Market Clarity Act

Crypto market structure draft bill defines “digital commodity” as fungible, blockchain-based asset that enables peer-to-peer transfers without intermediaries. This excludes stablecoins, NFTs, and meme coins, resolving authority wars between the CFTC and the SEC.

The bill grants CFTC jurisdiction over spot markets, requiring registration for brokers, dealers, exchanges, and custodians. Key mandates include anti-manipulation safeguards, segregated customer funds, cybersecurity protocols, and chief compliance officers to prevent fraud.

Open-source developers and self-custody wallets finally get exemptions from money transmitter rules. The crypto market structure bill provides individuals the right to hold and transact digital assets directly, without relying on intermediaries.

The CFTC needs to finalize rules within 18 months of enactment, with a transition period for existing platforms. It also mentions joint CFTC-SEC guidance on “mixed” trades and international coordination.

Massive Developments for Bitcoin

“The Great Harvest” author Adam Livingston claims the crypto market structure bill has the most pro-Bitcoin federal language, defining BTC as a digital commodity. He added that the bill creates fully regulated CFTC-supervised spot Bitcoin exchanges, boosting trust in spot Bitcoin infrastructure among Wall Street firms.

Livingston said, “This is the first time U.S. law has formally acknowledged Bitcoin’s sovereignty principles.” The protection of self-custody and peer-to-peer transactions is key in the draft. Corporate treasuries will have the clarity and boost Bitcoin as a reserve asset.

He believes trillions would come into the crypto market from Bitcoin-backed credit, BTC treasury ladders, BTC money-market equivalents, insurance-linked lending products, and enterprise settlement rails.

The bill is a top priority for both the politically powerful crypto industry and President Donald Trump. It is designed to provide the “regulatory clarity” that digital asset executives and lobbyists have always needed.