US Senate Committee Introduces Crypto Industry Regulation Bill
- Senators proposed a new model for regulating digital commodities.
- DeFi protocol developers could receive “immunity” from financial oversight.
- The CFTC is being positioned as the main regulator of the crypto market.
- The bill also clearly defines the jurisdictions of the SEC and the CFTC.
The US Senate Committee on Agriculture published a draft bill regulating the circulation of digital assets.
CoinDesk noted that the crypto market structure bill is moving forward without the expected bipartisan support. Despite the political and practical need for Democratic votes, the initiative is still advancing for now as a Republican-led effort.
One of the bill’s key provisions is to remove DeFi protocol developers from direct regulation. Crypto attorney James Murphy said the document creates a pathway for DeFi that allows it to avoid regulation by the CFTC. According to him, this shields DeFi developers and some service providers from liability under CFTC rules.
The bill separately выделяет a category of digital commodities — assets that are neither securities nor derivatives. This includes blockchain tokens and memecoins that do not fall under the oversight of the US Securities and Exchange Commission (SEC). Instead, supervision would be handled by the US Commodity Futures Trading Commission (CFTC). NFTs, stablecoins, and derivatives are excluded from the scope of the document.
The bill also requires registration for all market participants, including exchanges, brokers, custodians, and DAOs. It proposes a simplified onboarding process with a temporary status, but with compliance requirements and the delisting of “risky” assets.
In addition, the document defines the term DeFi and decentralization criteria. It also предусматривает the creation of the role of Digital Commodity Retail Advocate — a representative for retail investors who will operate within the CFTC.
In the event of violations, the CFTC will be able to revoke a license or go to court seeking the appointment of an external administrator to run the platform. To prevent conflicts between the SEC and the CFTC, a joint rulemaking procedure and a coordinated delisting mechanism are introduced.
Journalists noted that the hearings on amendments scheduled for January 27, 2026, are one of the few opportunities for Democrats to change the bill before it potentially reaches the Senate floor. Another chance could come during the process of merging two versions of the document — one approved by the Agriculture Committee and another drafted by the Senate Banking Committee — into a single bill for overall consideration, the statement said.
However, US Senate Agriculture Committee Chair John Boozman said that Republicans have so far failed to reach a compromise with Democrats on a number of “fundamental policy issues” related to crypto market structure legislation.
Previously, media reports said the White House could drop the CLARITY Act due to Coinbase’s actions.
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