The US Senate Agriculture Committee has introduced the Digital Commodity Intermediaries Act. The 155-page bill grants the Commodity Futures Trading Commission (CFTC) primary oversight of spot markets for digital commodities like Bitcoin.
Senator John Boozman, Republican chairman of the committee, released the legislative text on January 21. The committee vote is scheduled for January 27. The bill lacks Democratic support. This reduces its chances of passing the Senate. The proposal emerged amid stalled discussions on the CLARITY Act crypto infrastructure legislation.
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CFTC receives broad powers
The bill creates a new regulatory framework for crypto trading in the United States. At its core is the definition of digital commodities: fungible digital assets that can be transferred without intermediaries and are recorded on a cryptographically secured ledger.
Crypto platforms would need to register with the CFTC. The bill introduces four new categories: Digital Commodity Broker, Digital Commodity Custodian, Digital Commodity Dealer, and Digital Commodity Trading Facility. Each category has specific requirements for risk management, transparency, and customer protection.
Stablecoins, bank deposits, and tokenized securities do not fall under the new definition. The SEC remains responsible for these instruments. The bill primarily targets assets classified as commodities.
Democrats refuse support
Senator Cory Booker, the Democratic lead negotiator, had worked with Boozman for months on a bipartisan compromise. Still, no agreement was reached.
"I am particularly concerned about the lack of resources and bipartisan commissioners at the CFTC, regulatory arbitrage, and the ongoing corruption of public officials." - Senator Cory Booker
The CFTC faces significant structural problems. Currently, only one commissioner is serving. The law requires five. The agency also has far fewer staff than the SEC with its approximately 4,200 employees. A new funding mechanism in the bill would collect fees from crypto companies. The details remain unclear.
Background: Clarity Act and the regulatory vacuum
The United States has struggled for years to establish a coherent legal framework for digital assets. Both the SEC and CFTC claimed jurisdiction. This led to legal uncertainty and numerous lawsuits against crypto exchanges like Coinbase and Binance.
The House of Representatives already passed the Clarity Act (officially: Financial Innovation and Technology for the 21st Century Act). The Clarity Act clearly divides oversight between the SEC and CFTC. Yet the Senate needs its own version. The new bill deviates from the Clarity Act and gives the CFTC more authority. The Banking Committee, responsible for SEC-related aspects, delayed its vote multiple times.
Boozman is now pushing for speed. In a statement, he emphasized: "This timeline ensures transparency and allows for thorough review." At the same time, he acknowledged that differences on fundamental policy issues remain.
Uncertain path to passage
Passage in the Senate requires 60 votes. Without Democratic support, Republicans cannot clear this hurdle. And the bill contains several placeholders indicating unresolved disputes.
The crypto industry is intensifying its lobbying efforts. Clear US crypto regulation would provide legal certainty for exchanges, brokers, and institutional investors. Yet the political divide between parties runs deep. Whether the Digital Commodity Intermediaries Act becomes law depends on whether Boozman can still convince the Democrats.
