Key points
The Senate bill gives the CFTC full control over Bitcoin and Ether trading rules in the US.
Cryptocurrency exchanges and brokers must register as digital commodity exchanges and follow strict federal standards.
Senators remain divided over the application of identity and anti-money laundering controls to decentralized finance (DeFi) platforms that operate without intermediaries.
Currently, the CFTC only has one active commissioner and new leadership appointments are still pending.
The current 41-day federal shutdown has halted Senate work on the crypto market structure bill.
Washington- The US Senate is reviewing a bipartisan proposal that would put the Commodity Futures Trading Commission (CFTC) in charge of regulating digital products like Bitcoin and Ether. The measure seeks to establish uniform rules for commerce and protect customers in an industry that has operated without clear federal oversight.
The bill, authored by Sen. John Boozman (R-Ark.) and Sen. Cory Booker (D-N.J.), directs the CFTC to license and monitor cryptocurrency exchanges, brokers and clearinghouses. The registered companies would operate as Digital Commodity Exchanges (DCE) under new federal standards for custody, reporting and trading practices.
“The purpose is to bring order to a market that has been operating without consistent rules,” Boozman said. Booker said the proposal ensures that customer funds are separate from company accounts and requires more public reporting from crypto companies.
The plan builds on previous legislation passed by the House of Representatives that gave the CFTC responsibility for the digital commodities market. Together, the bills aim to resolve a long-running dispute over whether digital assets belong to the CFTC or the Securities and Exchange Commission (SEC). Under the new proposal, the SEC would continue to oversee assets that function as securities, while the CFTC would handle spot trading of Bitcoin, Ether and other tokens that are not securities.
Debate continues over how the rules should apply to decentralized finance (DeFi) platforms. Supporters of stricter controls want these platforms to follow anti-money laundering requirements similar to those for banks. Others argue that applying the same rules to decentralized software would be unworkable and could drive developers out of the country.
The CFTC’s ability to carry out the new mandate remains uncertain. The commission currently has one active member. President Donald Trump nominated Mike Selig to lead the agency, with two Democratic seats still vacant. Boozman said the commission “must be fully staffed and trained” before taking on new duties. Booker agreed that enforcement will depend on whether the agency receives enough funding to handle the workload.
Progress on the legislation has slowed during the current 41-day government shutdown, which has halted most committee activity. A vote on short-term funding this week will determine when the Senate will resume debate on the bill.
Cryptocurrency exchanges have urged Congress to end the measure, arguing that clear federal rules would replace the patchwork of state-level regulations. Coinbase CEO Brian Armstrong said after a recent meeting with senators that most of the technical details “are already worked out” and that both sides appear ready to move forward.
Sen. Thom Tillis (R-N.C.) warned that Congress has a limited window to vote on the measure before next year’s election calendar limits session time. SEC Chairman Paul Atkins said he is already coordinating with the CFTC to align enforcement and registration requirements.
The White House has called on Congress to deliver the final bill to President Trump by the end of 2025. Supporters hope the move will finally bring legal clarity to a market valued at more than $1 trillion and end years of regulatory uncertainty around digital assets.
Also read: CFTC Commissioner Summer Mersinger to Lead Blockchain Association as New CEO