TLDR
- Draft bill divides crypto oversight between the SEC and CFTC for clarity.
- Bitcoin gains a proposed classification as a digital commodity.
- Exchanges would face new registration and reporting requirements.
- Stablecoin issuers must maintain reserves and follow federal oversight.
The U.S. Senate has released a long-expected draft bill that could reshape the rules for digital assets. Lawmakers aim to set clearer roles for federal agencies and bring order to a market that has grown without a stable rulebook. The draft seeks to settle long-running disputes over which assets fall under securities or commodities rules. The move could also give Bitcoin a formal place under U.S. law.
Clearer Oversight Structure Proposed
The draft bill divides oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Lawmakers say this approach will reduce years of uncertainty that slowed market expansion. Many firms have faced challenges because the agencies often disagreed on how to treat tokens. The new language attempts to set a stable system that both agencies can use.
Under the proposed framework, assets that operate on open and decentralized networks would fall under the CFTC. Tokens tied to a company or a central group would move under the SEC. This is meant to give developers and exchanges more clarity as they build new products. It could also help new firms enter the market with clear rules from the start.
Bitcoin’s Position as a Digital Commodity
One of the key sections addresses how Bitcoin would be treated under the new structure. The bill places Bitcoin in the category of digital commodities. This would give it a clearer legal status because it does not depend on a central party. Industry groups have called for this step for years. They say the current system creates confusion for miners, exchanges, and long-term holders.
Lawmakers believe this approach will support stronger consumer protection. Clear rules may also help reduce disputes between state and federal agencies. Firms dealing in Bitcoin would also follow new compliance steps, including updated reporting and anti-fraud controls. These steps mirror long-standing requirements for traditional commodities markets.
Rules for Exchanges and Stablecoins
The draft also includes new registration and reporting rules for crypto exchanges and brokers. They would need to register with the correct federal agency and follow updated disclosure standards. The goal is to reduce market risks and bring trading platforms closer to the standards used in other financial markets. Many firms have operated under mixed guidance, and the bill aims to end that confusion.
Stablecoins receive a separate section in the draft. Issuers would need to hold reserves that match their tokens and follow regular reporting. This aims to prevent failures that could disrupt payment systems. Federal oversight would replace the current patchwork of state rules. Lawmakers say this setup will support safer use of dollar-linked tokens while keeping space for payment innovation.
Path Forward for the Draft Bill
The Senate plans to advance the bill before the end of the year. Lawmakers view it as a step toward a modern regulatory system for digital assets. Industry groups are reviewing the draft and expect more changes during committee discussions. Many firms have said they want clear rules so they can operate without long disputes.
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