The draft, released Nov. 10, protects self-custody rights but leaves DeFi provisions unresolved, according to the committee.
Key Takeaways:
- The bipartisan draft gives the CFTC exclusive jurisdiction over spot digital commodity markets, the committee said.
- Section 103(d) protects self-custody rights, allowing peer-to-peer transactions without mandatory intermediaries, the draft shows.
- Key issues including stablecoin regulation remain unresolved, with provisions deferred to the GENIUS Act, according to the document.
Nov. 10 (Crypto-News.Net) – The Senate Agriculture Committee released a bipartisan discussion draft granting the Commodity Futures Trading Commission exclusive jurisdiction over spot digital commodity markets, the committee said Monday.
The draft establishes oversight of registered intermediaries including brokers, dealers, and trading platforms, according to the committee’s statement. The legislation provides the CFTC with regulatory authority over exchanges and market participants handling digital assets classified as commodities, the committee stated.
Section 103(d) of the draft protects self-custody rights for individuals, the document shows. The provision allows users to maintain hardware and software wallets and engage in direct peer-to-peer transactions without mandatory intermediaries, according to the text.
Unresolved Regulatory Gaps
The draft leaves decentralized finance provisions incomplete, with Section 208 marked as a bracketed placeholder for future input, the draft indicates. Definitions related to DeFi in Section 101 remain unresolved, reflecting ongoing challenges as digital asset funds face regulatory review.
Stablecoin regulation was excluded from the draft, with provisions deferred to the separate GENIUS Act, which faces scrutiny over consumer protections, according to the document. Secondary market rules fall under the proposed spot market regime but joint SEC-CFTC coordination requirements remain bracketed, the committee noted.
The draft builds on the House-passed CLARITY Act from July 2025, which addressed similar digital asset market structure issues, the committee said.
Legislative Background
Sens. John Boozman (R-AR) and Cory Booker (D-NJ) led the bipartisan effort following months of negotiations. The draft represents the Senate Agriculture Committee’s response to expanding regulatory frameworks for digital assets, released amid ongoing government budget negotiations.
The committee seeks public feedback on bracketed provisions before finalizing the legislation, the release stated. No timeline was provided for completing unresolved sections or advancing the draft to a full committee vote.
