US senators to weigh CFTC, other amendments to crypto market structure bill

The United States Senate is preparing for a critical legislative push regarding digital asset regulation, centered on reviewing key amendments to a proposed market structure bill. The core focus of these deliberations is granting enhanced authority to the Commodity Futures Trading Commission (CFTC) over the spot trading of digital commodities.

Senators, particularly those on the Senate Banking and Agriculture Committees, are scrutinizing amendments designed to clarify jurisdictional boundaries between the CFTC and the Securities and Exchange Commission (SEC). Proponents argue that expanding the CFTC’s oversight is essential for establishing a clear, comprehensive regulatory framework for non-security tokens, addressing the industry’s long-standing demand for regulatory certainty.

Beyond CFTC jurisdiction, other significant amendments under consideration address critical components of the crypto ecosystem. These include consumer protection measures, requirements for increased transparency from centralized exchanges, and defining the legal status and reserve requirements for stablecoins. Furthermore, senators are debating amendments concerning the treatment of decentralized finance (DeFi) protocols, seeking to balance innovation with necessary risk mitigation.

Legislative experts believe the acceptance or rejection of these amendments will profoundly determine the future landscape of U.S. digital asset markets, shifting the current reliance on regulation-by-enforcement towards a more codified statutory approach.

Source: US senators to weigh CFTC, other amendments to crypto market structure bill