Senate Bill Proposes CFTC Oversight of Spot Crypto Markets

Senate Agriculture Committee Chair John Boozman has introduced legislation aimed at granting the Commodity Futures Trading Commission (CFTC) authority and funding to regulate spot cryptocurrency markets through brokers, dealers, exchanges, and custodians. According to NS3.AI, the bill proposes the establishment of an Office of the Digital Commodity Retail Advocate to handle retail user complaints, including withdrawal delays and platform outages, with the goal of enforcing regulatory feedback loops. Additionally, the bill seeks to clarify definitions related to decentralized finance (DeFi) protocols to determine the extent of regulatory oversight. It authorizes a $150 million appropriation to support initial regulatory efforts prior to the commencement of fee collections.