In-Depth Analysis of the U.S. Senate Crypto Market Structure Draft Bill

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In recent years, as crypto assets have grown increasingly important in global finance and technology, their lack of clear regulatory definition has been a persistent concern for the market. In the United States, the ongoing debate between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over whether digital assets are securities or commodities exemplifies this issue. To address this stalemate, in November 2025, Senate Agriculture Committee Chair John Boozman (R-AR) and Senator Cory Booker (D-NJ) jointly released the “U.S. Senate Crypto Asset Market Structure Draft Bill.”

Draft Background and Release

Senate Agriculture Committee Chair John Boozman (R-AR) and Senator Cory Booker (D-NJ) jointly released this draft, with the goal of expanding the CFTC’s authority over spot markets for Digital Commodities. The Agriculture Committee oversees the CFTC, which explains its involvement. Simultaneously, the Senate Banking Committee is developing its own version of Digital Asset Market Structure legislation, focusing on SEC-regulated domains. Both committees will need to coordinate and merge their versions before a Senate vote. At the time of release, legislative progress faced uncertainty from factors such as government shutdowns and budget negotiations.

Key Highlights: Who Regulates, Which Assets, What Rules?

The main provisions of the draft include:

• Clearly categorizing most decentralized and transferable assets as Digital Commodities, with the CFTC responsible for regulating spot markets.
• The SEC retains oversight of Digital Securities. Determination of regulatory authority depends on factors such as asset functionality, issuance method, and governance structure.
• Exchanges, brokers, custodians, and clearing firms must register and comply with rules on segregation of client assets, disclosure requirements, and conflict of interest prohibitions.
• Self-custody and innovative technologies receive certain protections. However, DeFi-related provisions are marked with brackets and “to be negotiated” notes, which indicates these provisions remain unsettled.
• Stablecoins are handled as a separate topic, with some issues excluded from this draft and requiring distinct legislation.

Potential Impacts on the Crypto Asset Market

This draft has far-reaching implications for the entire crypto market:

• Clearer regulation and innovation incentives: Previously, ambiguity over whether assets were regulated as securities or commodities left projects, exchanges, and investors in a legal gray zone. The draft’s passage could improve regulatory transparency and encourage greater institutional participation.
• Turning point for asset classification: If major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) are recognized as Digital Commodities rather than securities, regulatory burdens may ease and participation barriers may drop.
• Exchanges and custodians will need to adapt. Registration, disclosure, and segregation of client assets requirements will increase compliance costs but may also strengthen market trust.
• Influence on market sentiment: BTC is currently fluctuating around $102,000. This regulatory breakthrough could be viewed as a positive market signal and attract new capital.
• Ongoing risks: The draft remains under discussion, and many key provisions—especially those concerning DeFi—are unresolved. If the final version significantly limits innovation or sharply increases regulatory pressure, market participants may need to adjust.

Critical Considerations for Investors, Exchanges, and Project Teams

• Project teams should assess whether their assets may be classified as Digital Commodities or Digital Securities and revise their issuance, disclosure, and compliance structures accordingly.
• Exchanges and platforms should proactively plan for registration, segregation of client assets, governance structures, and compliance personnel.
• Investors should closely monitor regulatory uncertainty and the legislative timeline. Despite a clear strategic direction, timing and implementation details are still uncertain.
• Institutional investors may accelerate market entry as regulatory clarity can reduce legal risks and enhance liquidity.
• Pay attention to subsequent stablecoin regulation, since these issues will be addressed in separate legislation, potentially introducing new compliance requirements or opportunities.

Looking Ahead: Next Steps for the Draft and Market Outlook

Although the draft has been introduced, this marks only the beginning. The next steps are:

• The Agriculture Committee and Banking Committee will each revise and review their respective versions.
• The two versions will be consolidated and submitted for a full Senate vote. Industry consensus anticipates final passage may occur in Q1 2026.
• Once enacted, regulators (CFTC/SEC) will need to establish supporting rules, registration systems, and disclosure requirements. The process from draft to law to full implementation may be lengthy.
• Market outlook: Regulatory clarity may boost market confidence, while structural changes could trigger short-term volatility, requiring adjustments in project valuations and exchange operations.

In conclusion, this draft marks a pivotal shift in U.S. crypto regulation from a “wait and see” approach to proactive rulemaking. For the crypto asset ecosystem, the coming months will bring significant structural changes. Investors, industry professionals, and observers should continue to monitor developments closely.