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U.S. lawmakers have introduced bipartisan legislation that would grant the Commodity Futures Trading Commission (CFTC) sweeping authority over spot crypto trading, marking one of the most significant regulatory proposals since the CLARITY Act.
Senate Agriculture Committee Chairman John Boozman and Senator Cory Booker unveiled the discussion draft Monday, aiming to bring long-overdue oversight to the direct buying and selling of digital assets like Bitcoin and Ethereum.
The new draft builds upon the CLARITY Act passed by the House earlier this year, introducing a formal registration process for crypto trading platforms and a framework for spot crypto trading under the CFTC’s supervision.
Under the bill, exchanges dealing with spot crypto trading would need to maintain strict “customer fund segregation requirements,” implement “conflict of interest safeguards,” and enforce detailed “customer disclosure requirements.” This framework aims to create greater transparency while preventing another FTX-style collapse.
Brokers and dealers participating in spot crypto trading will be required to register as “digital commodity brokers” or “digital commodity dealers” and comply with custody regulations to ensure user funds are stored securely with “qualified digital commodity custodians.”
Senator John Boozman emphasized that the CFTC is best equipped to handle spot crypto trading oversight.
“The CFTC is the right agency to regulate spot digital commodity trading, and it’s essential to establish clear rules for this emerging market while protecting consumers,” Boozman said.
He added that the bipartisan proposal “provides the CFTC with new authority to regulate the spot crypto trading market, create protections for retail customers, and ensure the agency has the resources necessary to oversee this growing sector.”
However, Boozman acknowledged that the draft remains a “first step,” as the bill still seeks feedback on unresolved issues, including DeFi oversight, anti-money laundering rules, and interagency coordination with the SEC.
The crypto industry has largely welcomed the bill, calling it a turning point for spot crypto trading regulation. Many praised the inclusion of self-custody protections and clearer definitions for developers and infrastructure providers.
Kadan Stadelmann, CTO at Komodo Platform, told crypto.news the legislation “represents a major milestone in federal crypto regulation.”
“This bill would be a significant development after years of friction with the SEC. Whereas the CFTC views crypto as commodities, the SEC often treats them as unregistered securities — a stance that has stifled innovation. The CFTC’s approach could finally bring clarity to spot crypto trading,” Stadelmann explained.
Prominent market commentator Adam Livingstone echoed this sentiment on X (formerly Twitter), calling the bill “a huge win for Bitcoin’s sovereignty principles.”
While the draft legislation is still in its early stages, it signals a growing consensus in Washington that the CFTC should play a central role in overseeing spot crypto trading. If passed, the bill could set a global standard for digital asset regulation and rebuild investor trust following a turbulent few years in the market.
The proposed framework also underscores the importance of interagency cooperation between the CFTC and the SEC, ensuring both consumer protection and market innovation can coexist.
As the crypto market matures, lawmakers appear increasingly determined to bring spot crypto trading out of regulatory limbo and into a safer, more transparent era. Whether this bill will pass in its current form remains to be seen, but its bipartisan backing suggests real momentum toward a new chapter in U.S. crypto oversight.
