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Industry Seeks Revisions as Senate Crypto Market Draft Heads for December Markup

The proposal puts spot oversight under the CFTC, leaving major gaps on DeFi, developer status, AML.

Overview

  • Senate Agriculture leaders John Boozman and Cory Booker released a bipartisan discussion draft giving the CFTC authority over spot digital commodities and creating registrations for exchanges, brokers and dealers.
  • The framework imports futures-style consumer protections, including market surveillance, cybersecurity, segregation of customer assets with qualified custodians, disclosures, and pre-listing certifications.
  • The draft excludes securities and payment stablecoins, reserving securities oversight to the SEC and custodial and payment activities to federal banking regulators.
  • Large portions of text remain bracketed, with unresolved decisions on DeFi treatment, developer classification, AML and sanctions provisions, and certain definitions.
  • Industry groups are pressing for changes as sponsors coordinate with Senate Banking, target an early December markup, and confront CFTC resourcing issues with a confirmation hearing for chair nominee Mike Selig set for Nov. 19.