The U.S. Senate Committee on Agriculture, Nutrition, and Forestry advanced legislation that would provide new authority to the Commodity Futures Trading Commission (CFTC) to regulate digital commodities and strengthen consumer protections.
The Digital Commodity Intermediaries Act would develop a comprehensive framework for digital commodities that includes:
- A clear legal definition of digital commodities and the establishment of a spot market digital commodity intermediary regulatory regime with the CFTC;
- Consumer protections including customer fund segregation requirements, conflict of interest safeguards, and appropriate customer disclosure requirements;
- A trading registration regime designed to facilitate and onshore liquid and resilient regulated markets while protecting retail participants;
- Requirements for the CFTC and SEC to coordinate and collaborate on necessary inter-agency rulemakings;
- Robust protections for software developers and innovative technology; and
- A new funding stream for the CFTC to stand up a spot market regulatory regime.
“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,” Sen. John Boozman (R-AR), chairman of the committee, said.
The legislation builds on the bipartisan, House-passed CLARITY Act and incorporates provisions negotiated with Senate Democrats and input from stakeholders.
It now moves to the full Senate for consideration.