Senators Boozman and Booker Unveil Bipartisan Draft to Regulate Digital Commodities
U.S. Senators John Boozman (R-AR), Chairman of the Senate Committee on Agriculture, Nutrition and Forestry, and Cory Booker (D-NJ) have introduced a discussion draft of legislation that could reshape the regulation of digital commodities in the United States. This proposal builds on the CLARITY Act, which passed the House of Representatives in July, giving the Commodity Futures Trading Commission (CFTC) new oversight authority over digital commodity markets.
The draft legislation aims to establish a clear regulatory framework for spot market digital commodities, ensuring consumer protection, transparency, and accountability. Among the key provisions are:
- A defined regulatory regime for spot market digital commodities under CFTC authority.
- Consumer protections for digital commodity trading.
- A trading registration system for digital commodity platforms.
- Coordination between the CFTC and SEC for joint rulemaking.
- A new funding mechanism to help the CFTC implement its spot market oversight responsibilities.
Chairman Boozman emphasized the importance of establishing clarity and fairness in this emerging market. He stated,
“The CFTC is the right agency to regulate spot digital commodity trading, and it is essential to establish clear rules for the emerging crypto market while also protecting consumers. This discussion draft advances those goals and lays an important marker as we work toward final policy language. I appreciate Senator Booker’s partnership as we advance those objectives and create a regulatory framework to participate in this marketplace. I’m grateful for his collaboration in strengthening this proposal, and I look forward to continuing working with him, the Senate Banking Committee, and our House colleagues to deliver bipartisan legislation that protects the public, fosters innovation and allows U.S. businesses to thrive.”
Senator Booker added,
“More Americans are engaging with novel financial markets and payment systems than ever before, and Congress must take steps to strengthen and expand regulatory frameworks to protect consumers from predatory practices, keep our markets safe, and prevent bad actors from exploiting regulatory gaps. This bipartisan discussion draft would provide the CFTC with new authority to regulate the digital commodity spot market, create new protections for retail customers, and ensure the agency has the personnel and resources necessary to oversee this growing market.”
Audio Reporting by Dale Sandlin for Southeast AgNet.