The proposal by the US Senate Majority Leader focuses on new regulation of cryptocurrency markets

The senior U.S. Senate leader in agriculture, John Boozman, has introduced an ambitious legislative initiative aimed at transforming oversight of the cryptocurrency market. The chairman of the Senate Agriculture Committee proposes granting the Commodity Futures Trading Commission (CFTC) the necessary authority and funding to regulate all segments of the spot digital asset market.

CFTC will gain expanded authority over the market

According to available information, the proposal focuses on comprehensive oversight involving all key market participants. The legislation aims to enable the CFTC to regulate the activities of brokers, trading dealers, digital exchanges, and asset managers. This approach seeks to create a unified regulatory framework that covers the entire cryptocurrency trading ecosystem from intermediaries to end-user platforms.

Chairman Boozman emphasizes the importance of a clear legal architecture in formulating the bill, which will prevent regulatory fragmentation at various levels of governance.

New protection system for retail users

A key component of the initiative is the creation of a dedicated Office for Retail Investor Protection in the digital commodities sector. This agency will directly address complaints from ordinary users, especially those related to technical failures such as delayed withdrawals and trading platform outages.

The office will become a crucial tool for building trust in the market by collecting feedback from consumers and contributing to the improvement of regulatory standards. This approach recognizes that ordinary investors need special protection in cases of market mechanism failures.

Clarification of DeFi protocols and budget allocation

The bill also aims to define the boundaries of regulatory oversight over decentralized finance (DeFi) protocols. The legislation seeks to specify which aspects of blockchain-based systems fall under the jurisdiction of the CFTC and how oversight should be enforced without unnecessarily stifling innovation.

To implement these plans, the Senate chairman and his colleagues have secured an allocation of $150 million. These funds will cover initial costs for establishing the regulatory apparatus before the fee system is introduced. This step demonstrates a serious approach to modernizing oversight of the cryptocurrency sector.