US Senate Committee Plans Crypto Guidance for CFTC
The U.S. Senate Committee on Agriculture is preparing to release a draft discussion outlining how the Commodity Futures Trading Commission (CFTC) would regulate the crypto industry, potentially alongside the Securities and Exchange Commission (SEC). This action follows the Banking Committee's recent draft market structure bill, which primarily addressed the SEC’s responsibilities.
What to Expect from the CFTC Crypto Guidance
According to an X post by journalist Eleanor Terrett, the Senate Agriculture Committee, which oversees the CFTC, intends to release its draft discussion in early September. The guidance will clarify the CFTC’s regulatory authority over the crypto sector.
Terrett noted that the Senate Banking Committee, which oversees the SEC, recently released a crypto market structure bill focused on the SEC’s role. The upcoming CFTC guidance and the previous bill are expected to merge into a comprehensive market structure framework.
The Agriculture Committee aims for a bipartisan draft, incorporating input from key members, including Democratic Senator Amy Klobuchar. The release is timed to coincide with the Senate's return from recess. The White House has set a September deadline for Congress to pass the market structure legislation, following the recent enactment of the GENIUS Act.
CFTC’s Role in Crypto Regulation
The draft crypto market structure bill acknowledges the CFTC’s role in regulating the crypto industry, treating digital assets as commodities rather than securities. The proposed legislation requires the CFTC and SEC to collaborate and issue joint rules for crypto entities registered under their respective jurisdictions.
Additionally, the bill proposes that the CFTC must decide on crypto-related applications within 270 days of a completed filing. The Senate Agriculture Committee is expected to include similar provisions in its draft CFTC guidance.
The Senate Banking Committee has sought feedback on whether the market structure bill appropriately balances jurisdiction over digital assets between the SEC and CFTC. It remains to be seen whether the Senate will prioritize its version of the CLARITY Act or integrate key provisions into the House’s CLARITY Act.
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