Main highlights
- U.S. Senate AG Committee formally introduces “discussion draft” on virtual currency market structure for the first time
- This draft proposal provides a clear legal definition of digital products with a formal regulatory regime for spot markets under the CFTC.
- This proposal would provide much-needed consumer protections and a new source of funding for the CFTC.
U.S. Senate Agriculture, Nutrition, and Forestry Committee Chairman John Boozman and Senator Cory Booker have officially unveiled a “discussion draft” on the cryptocurrency market structure. The draft law grants new powers to: The Commodity Futures Trading Commission (CFTC) “regulates digital products.”
JUST IN: 🇺🇸 U.S. Senate AG Committee releases bipartisan Bitcoin and Cryptocurrency Market Structure Discussion Act. pic.twitter.com/JuHGvq7qo7
— Bitcoin Junkies (@BTCjunkies) November 10, 2025
The official press release states that the proposal would direct the CFTC to create a regulatory framework for digital products. The bill “expands the CLARITY Act, which was approved by the House in July.”
“The CFTC is the appropriate agency to regulate physical digital goods trading, and it is imperative that we establish clear rules for emerging crypto markets while protecting consumers. This discussion draft advances those goals and provides an important benchmark as we work toward final policy language,” Boozman said in an official press release.
What is included in the Virtual Currency Market Structure Bill?
According to the official press release, the discussion draft is the result of several months of negotiations and contains a number of important provisions.
This draft proposal provides a clear legal definition of “digital goods”. This would create a formal regulator for the spot market under the oversight of the CFTC.
This proposal isThis includes rules that require customer funds to be kept separate from the trading platform’s own funds. This provides security against conflicts of interest and clear disclosure requirements for retail investors.
Separately, the draft law creates a new registration system for trading platforms. The system aims to “promote a liquid and resilient regulated market while protecting retail participants.”
The law requires the CFTC and the Securities and Exchange Commission to “coordinate and cooperate” in rulemaking. This will also end the power struggle between the two financial institutions.
It also includes protection for individuals who wish to hold their assets in self-custodial wallets. In exchange for this oversight, the proposal would provide new funding sources for the CFTC to hire staff and build the necessary infrastructure.
“As Congress works to expand the Commission’s authority to oversee trading in commodity digital assets, it is also important to ensure that the Commission has the tools, personnel, and resources necessary to carry out this new mission in addition to its current responsibilities. Strengthening this agency will better protect consumers, foster innovation, promote transparency, and maintain liquid and resilient markets.” Boozman said in a press release.
“This consideration draft is a first step, and we still have important work to do before the bill moves out of committee and ultimately to the Senate floor. I am particularly concerned about the CFTC’s lack of resources and the ability of bipartisan commissioners to block regulatory rulings. “I encourage my colleagues and external stakeholders to come together to address these issues,” Booker said. Official statement.
US Government Agencies Step Up Efforts to Develop Clear Cryptocurrency Regulations
The market structure discussion draft comes amid ongoing legislative efforts under US President Donald Trump’s pro-crypto administration.
Today, the U.S. Department of the Treasury and the Internal Revenue Service announced new guidelines that provide a clear regulatory pathway for virtual currency exchange traded funds (ETPs).
The new guidelines will allow these financial products to stake digital assets on behalf of investors and distribute the rewards earned from this process.
After Trump took the oath of office, the cryptocurrency market has seen positive regulatory developments.