The Senate Agriculture Committee has released the much-anticipated draft of its section of a major crypto market structure bill, marking a key step toward overhauling how digital assets are regulated in the United States. This move signals progress in congressional efforts to create clear, robust rules for cryptocurrency trading and consumer protection.

Chaired by John Boozman and joined by Senator Cory Booker, the committee’s draft focuses on expanding the authority of the Commodity Futures Trading Commission (CFTC), granting it new oversight powers over digital commodities like bitcoin and ether. The bill proposes to clearly define terms such as “digital assets” and “blockchain,” and outlines the limits of what both the CFTC and the Securities and Exchange Commission (SEC) can supervise within the crypto market.

Yet, the drafting process is far from final. Many sections are still open for negotiation, including pivotal definitions and structural details about CFTC leadership. The committee’s draft contains bracketed passages that highlight areas lawmakers are still debating, ranging from the makeup of CFTC commissioners to methods for addressing regulatory loopholes and conflicts of interest. Notably, the CFTC currently has only one acting commissioner, underscoring the urgency to fill key positions for effective governance.

The bill also aims to bolster consumer protection, introducing new safeguards for retail investors. Lawmakers emphasize the importance of preventing predatory practices, keeping markets secure, and closing gaps that could be exploited by bad actors.

This draft is a response to growing demand from industry leaders and advocates, who have long requested regulatory clarity from Washington. It represents just one part of the broader legislative puzzle, as the Senate Banking Committee—overseeing securities regulation—must also finalize and coordinate its own section of the bill. Negotiations between Senate Republicans and Democrats continue, with hopes of reaching bipartisan consensus and advancing the legislation to a markup stage soon.

While the Senate Agriculture draft brings Congress closer to defining the jurisdictional boundaries and setting a nationwide standard for crypto oversight, several political and practical hurdles remain. The pace of progress has been influenced by ongoing debates, budget disputes, and concerns over the risks posed by decentralized finance and potential conflicts of interest.

Overall, the release of this draft marks a significant milestone in the effort to modernize U.S. crypto regulations, though lawmakers still face important decisions and negotiations before the bill can become law. The coming months will be crucial as Congress works to finalize details and establish the regulatory framework that will shape the future of digital assets in America.