Senate panel unveils updated crypto market bill amid CFTC power push

U.S. senators advance an updated crypto market structure bill expanding CFTC oversight, but key fights over DeFi, stablecoins and rewards still block consensus.

The U.S. Senate Agriculture Committee released an updated draft of legislation that would expand the Commodity Futures Trading Commission’s authority over digital assets, according to documents made public Wednesday.

The committee scheduled a markup hearing for January 27 to advance the crypto market structure bill, which follows a 155-page draft released in November. The updated version reflects ongoing negotiations between Republican Chair John Boozman and Democratic Senator Cory Booker, though several key provisions remain unresolved.

Senate changes crypto market structure bill

Senator Boozman stated that collaboration with Senator Booker has improved the legislation, while acknowledging that differences persist. The draft incorporates input from multiple stakeholders, according to committee materials.

Several contentious issues remain under negotiation, including the regulatory treatment of decentralized finance platforms and stablecoins. The updated draft removed provisions related to anti-money laundering requirements and regulations for noncontrolling blockchain developers that appeared in earlier versions.

Lawmakers continue to debate the treatment of stablecoin rewards, a matter that has drawn opposition from segments of the cryptocurrency industry and traditional banking institutions. Industry groups have raised concerns about potential competitive impacts if stablecoin issuers receive authorization to offer interest payments to token holders.

The Senate Banking Committee had planned to advance separate cryptocurrency legislation but postponed its meeting after Coinbase, a major cryptocurrency exchange, withdrew support. Points of disagreement included regulatory approaches to decentralized finance, tokenized securities, and stablecoin rewards.

Once both committees finalize their respective versions, a consolidated bill would proceed to the full Senate, where passage requires 60 votes and bipartisan support. The legislation, if enacted, would establish a regulatory framework for digital asset markets in the United States.