Senate Committee Advances Digital Asset Oversight Framework

CN
3 hours ago

Federal lawmakers are continuing efforts to formalize oversight of digital asset markets. The U.S. Senate Committee on Agriculture, Nutrition, and Forestry, chaired by Sen. John Boozman, advanced the Digital Commodity Intermediaries Act on Jan. 29, 2026, aiming to expand Commodity Futures Trading Commission (CFTC) authority and reinforce consumer protections.

Committee Chairman Boozman said:

“This is a critical step toward creating clear rules for digital asset markets. Advancing this bill brings us closer to a U.S. regulatory framework that protects consumers while allowing American innovation and businesses to thrive.”

“There’s still more work ahead, but I’m proud to lead this important effort and hopeful this will build momentum in the Senate to advance this legislation,” the lawmaker added.

The Arkansas Republican described the committee action as the product of sustained bipartisan engagement, citing concerns from regulators, market participants, and consumer advocates about fragmented oversight. He framed the bill as a foundation for regulatory clarity that balances innovation with accountability as it moves through the Senate. The committee advanced the measure by a narrow 12-11 vote, with Republicans backing the bill and Democrats opposing it over consumer protection and ethics provisions.

Read more: US Lawmakers Say Crypto Market Structure Bill Is ‘Closer Than Ever’ as Bipartisan Negotiations Continue

The committee-passed legislation builds on the bipartisan, House-passed CLARITY Act and incorporates provisions negotiated with Senate Democrats as well as input received during bipartisan meetings with stakeholders. The framework establishes a legal definition for digital commodities, creates a CFTC-supervised spot market intermediary regime, and introduces customer fund segregation requirements, disclosure obligations, and conflict-of-interest limitations.

It also establishes a trading registration system designed to support resilient, onshore liquidity while safeguarding retail participants, directs coordination between the CFTC and the U.S. Securities and Exchange Commission (SEC) on inter-agency rulemakings, provides protections for software developers and emerging technologies, and creates a new funding stream to support implementation as senators continue debating comprehensive crypto market structure legislation.

  • What is the Digital Commodity Intermediaries Act?
    It is Senate legislation expanding CFTC authority over digital commodity spot markets.
  • Which agency gains new oversight under the bill?
    The Commodity Futures Trading Commission would supervise digital commodity intermediaries.
  • How does the bill protect crypto consumers?
    It requires customer fund segregation, disclosures, and limits conflicts of interest.
  • What role does the SEC play in the framework?
    The SEC is directed to coordinate with the CFTC on joint rulemakings.

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