Key Highlights of the Senate Cryptocurrency Bill
Bitcoin and Ethereum would be classified as digital products regulated by the Commodity Futures Trading Commission (CFTC).
Cryptocurrency exchanges, brokers, and custodians are required to register as digital commodity exchanges (DCE) under federal law.
Client funds must be kept separate from company assets and verified through regular audits.
Tokens can only be traded with transparent and stable markets to limit manipulation and fraud.
The CFTC and SEC will divide responsibilities: the CFTC for commodities, the SEC for security tokens.
Registered entities will pay licensing and compliance fees to support CFTC oversight.
Trading, custody and brokerage functions should operate as independent units to avoid conflicts of interest.
The Agriculture and Banking Committees will merge their drafts before sending the final bill to the full Senate.
Washington- Wall Street executives and crypto leaders describe a bipartisan US Senate bill that would give federal regulators direct authority over Bitcoin and Ethereum trading as the most significant piece of financial legislation in nearly a century.
On November 10, the Senate Agriculture Committee published a proposal that would formally place digital products such as Bitcoin (BTC) and Ethereum (ETH) under the Commodity Futures Trading Commission (CFTC). The bill was authored by Sen. John Boozman (R-Ark.) and Sen. Cory Booker (D-N.J.) and sets new national standards for how cryptocurrencies are traded, stored and protected.
“This is the clearest roadmap yet for how traditional financial institutions can interact with digital assets,” said Cody Carbone, CEO of the Digital Chamber, in an interview with CNBC. “It tells companies exactly what is expected of them, rather than leaving them guessing.”
CFTC will regulate Bitcoin and Ether trading
Under the draft, the CFTC would supervise trading platforms that trade Bitcoin and Ether, classifying both as digital products. Crypto exchanges would need to register as digital commodity exchanges (DCE) and follow federal rules on asset custody, accounting, and customer protection.
The proposal would also separate trading, brokerage and custody activities within exchanges, a structure designed to avoid conflicts of interest, similar to traditional banking rules. The Securities and Exchange Commission (SEC) would retain authority over tokens considered securities, while both agencies would collaborate on shared areas such as disclosure and reporting.
If enacted, the new system would end years of jurisdictional disputes between the CFTC and the SEC, which have left the US crypto market in a state of regulatory uncertainty.
The White House and the banking industry support the proposal
The draft has the support of the White House and major financial institutions. President Donald Trump has called digital asset regulation “a national priority,” saying the proposal could bring stability to the industry while keeping innovation within the borders of the United States.
Banking executives see the bill as a turning point for the integration of cryptocurrencies into the broader financial system. Brian Moynihan, CEO of Bank of America, said clear rules would allow banks to handle crypto transactions with confidence. “Once there is legal clarity, financial institutions will finally be able to offer regulated services for digital assets,” he said.
Brian Armstrong, CEO of Coinbase, said his firm met with lawmakers from both parties to discuss the bill. “There is rare bipartisan agreement on this,” Armstrong said. “Everyone understands that digital assets are too big to ignore, and this gives the market a way forward.”
Bill imposes strict trading and disclosure rules
The Senate draft requires cryptocurrency trading platforms to separate customer assets from company funds, maintain transparent order books, and record all trades for regulatory review.
Exchanges would need to publish clear, standardized disclosures about pricing, custody arrangements and handling of user deposits, similar to those required for futures and registered stock exchanges.
The CFTC would conduct regular audits and require independent verification of reserves to prevent misuse of client assets, a key issue highlighted by the collapse of FTX and other exchanges.
The proposal also limits which tokens can be included for trading. Exchanges could only offer assets that have proven to have stable markets and limited potential for manipulation. That provision aims to curb speculative tokens and prevent schemes such as wash trading and artificial volume inflation.
To fund its expanded oversight, the bill allows the CFTC to collect registration and examination fees from approved digital commodity exchanges.
Together, these measures would replace the fragmented self-regulation that currently dominates cryptocurrency trading with a standardized federal regulation modeled on existing commodity and futures laws.
Senate committees to align crypto rules before end of year
The Agriculture Committee’s digital assets draft will next move into a joint review with the Senate Banking Committee, which is preparing a separate bill covering digital tokens that qualify as securities. Staff from both panels are already reconciling overlapping sections to produce a single text for general debate.
Lawmakers involved in the talks said the goal is to finalize the text before the end of 2025 so the proposal can reach the Senate floor early next year. The combined version will explain how responsibilities are divided between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), an issue that has stalled cryptocurrency regulation for more than five years.
If the committees agree to the final draft, it will go to a vote in the Senate and then go to the House for review. Several industry groups, including the Digital Chamber and the Blockchain Association, have already pledged support, saying the move would give exchanges, banks and investors the first clear federal rule established for digital asset trading in the US.
Also read: Senate Proposes CFTC Regulation for Bitcoin and Ether Trading