U.S. Senate Agriculture Committee Releases CFTC Digital Commodity Regulation Draft in September 2025

The U.S. Senate Agriculture Committee is set to release a bipartisan draft guidance in early September 2025, outlining the Commodity Futures Trading Commission’s (CFTC) role in regulating digital assets as commodities [1]. The initiative, led by the committee—which oversees the CFTC and collaborates with the Senate Banking Committee on market structure legislation—seeks to clarify the CFTC’s authority over cryptocurrencies and related markets. The draft will align with the Senate Banking Committee’s recent proposal for the Securities and Exchange Commission (SEC)’s regulatory framework, with plans for potential legislative consolidation [3]. A key focus is to address ambiguities in the CFTC’s de jure powers, emphasizing responsibilities in market oversight, derivatives, and enforcement [4].

The release timeline coincides with the end of the Senate recess and a White House-mandated deadline for Congress to finalize a crypto market structure framework. This follows the recent signing of the GENIUS Act, which set a legislative timeline for digital asset governance [2]. The draft guidance is expected to reinforce joint regulatory efforts between the SEC and CFTC, with the merged market structure bill proposing that the two agencies collaborate on rules for crypto firms registered with either agency [3]. The CFTC’s expanded role may include formal authority over primary crypto markets, extending beyond its current oversight of derivatives and futures contracts [5].

The implications for the CFTC could reshape its regulatory footprint, addressing gaps in its ability to tackle risks like market manipulation or fraud in spot trading. However, the specifics of its expanded mandate remain unclear. The draft may retain a provision requiring the CFTC to issue decisions on crypto-related applications within 270 days of submission, solidifying its authority and timelines in the crypto space [5]. For industry participants, the guidance could necessitate new compliance strategies under a unified CFTC framework, including registration, capital adequacy, and anti-market manipulation measures. The emphasis on enforcing CFTC rules may lead to increased scrutiny of exchanges and trading platforms [3].

The effort reflects broader congressional efforts to resolve regulatory fragmentation in the crypto sector. By distinguishing crypto assets as commodities rather than securities, the Senate aims to avoid jurisdictional conflicts between the SEC and CFTC. The committee has already signaled its intent to exclude resales of digital assets from securities law definitions, reinforcing the CFTC’s commodity-focused mandate [5]. While proponents argue that a clear CFTC role would foster investor confidence and market stability, critics caution against overreach that could stifle innovation. The bipartisan approach may help balance these concerns, though tensions between regulatory caution and industry flexibility are likely to persist [4].

The draft’s release in early September positions the Senate Agriculture Committee as a pivotal force in shaping U.S. crypto policy. As lawmakers address the sector’s rapid evolution, the CFTC’s expanded oversight—should the guidance gain traction—could become a cornerstone of federal regulatory strategy. This development underscores the urgency of legislative action, with multiple committees advancing proposals to address crypto’s unique challenges.

Sources:

[1] [Mitrade] https://www.mitrade.com/insights/news/live-news/article-3-981606-20250724

[2] [CoinGape] https://coingape.com/u-s-senate-committee-to-release-draft-crypto-guidance-for-cftc/

[3] [Coincu] https://coincu.com/news/us-senate-digital-commodities-cftc/

[4] [Coinpedia] https://coinpedia.org/crypto-live-news/

[5] [PANews] https://www.panewslab.com/en/articles/efvvv9r2