Regulatory framework of the crypto structure bill faces key negotiations in the Senate

The US cryptocurrency industry is at a regulatory inflection point. The Senate Agriculture Committee has introduced a new legislative draft aimed at defining the framework for overseeing the digital asset market, generating both optimism and concern within the sector.

Unlike previous attempts, this bill on the structure of the crypto market represents a tangible step forward after months of negotiations. However, the path to its final approval faces significant challenges, particularly in building the bipartisan consensus needed to turn it into law.

Structure of the New Draft in the Agriculture Committee

The Agriculture Committee has proposed a regulatory framework that leans toward a favorable outlook for the crypto industry. This version states that major cryptocurrency developers would not be automatically classified as regulated financial entities, a key aspect for the operational viability of the sector.

The proposal maintains a legal liability shield for developers, provided they do not custody user assets. It also elevates the Commodity Futures Trading Commission (CFTC) as the primary regulator of spot markets for assets like Bitcoin [BTC: $88,000], which do not qualify as securities under US regulation.

Committee Chairman John Boozman noted that the draft represents “months of work,” though he acknowledged that “differences remain on fundamental policy issues.” Despite these disagreements, he considered it important to move forward with the legislative initiative.

Regulatory Challenges and Divergences Between Committees

The proposed framework contrasts significantly with the approach of the Senate Banking Committee, which faced greater controversy. A critical breaking point was the dispute over whether stablecoins could offer rewards to customers—a topic that raised concerns in the traditional banking sector.

Democrats have expressed multiple concerns regarding this legislative structure. They fear that overly lax regulation may not adequately protect consumers, especially in the case of decentralized finance (DeFi). The securities industry, for its part, argues that these entities require regulatory frameworks similar to those of traditional financial firms, which many DeFi advocates consider operationally impossible.

Another point of conflict concerns regulatory appointment decisions. Some Democratic lawmakers have questioned the apparent reluctance to appoint members of their party to regulatory bodies like the CFTC and the Securities and Exchange Commission (SEC).

Next Steps in the Legislative Reform of the Draft Bill

For the crypto market structure bill to advance toward a full Senate vote, it needs support from at least seven Democratic lawmakers. Upcoming legislative hearings will provide opportunities to propose amendments that could substantially alter the framework of the bill.

It is widely expected that if it passes the Senate, the measure will move forward without significant obstacles in the House of Representatives, which has already shown support for similar legislation on digital asset market clarity.

President Donald Trump recently stated that the United States will “soon” pass comprehensive cryptocurrency legislation, signaling that the issue remains on the high-level legislative agenda. Meanwhile, the Securities and Exchange Commission has issued clarifying guidance indicating that tokenized securities are subject to existing securities laws, drawing a clear line between issuer-sponsored regulated products and third-party synthetic products.

The Future Regulatory Landscape

The convergence of these legislative efforts suggests that the fundamental structure of the crypto markets bill will evolve significantly in the coming months. Industry players, regulators, and lawmakers continue to negotiate what regulatory framework will enable innovation while protecting consumer interests.

Regardless of specific details, passing legislation on the crypto market structure would mark an important regulatory milestone for a sector that has operated for years without a clear regulatory framework. The current bill, although imperfect according to multiple stakeholders, makes significant progress compared to previous attempts, though its ultimate success will depend on negotiators’ ability to reconcile divergent visions on how to structure the regulation of these emerging assets.