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  • Debashree Patra
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    Fun-loving and cheerful, a passionate blockchain and crypto writer who knows no boundaryโ€ฆconnect if you share the same passion. With 10+ years of writing experience, I am a Crypto Journalist by chance, exploring, and learning all the dynamics of the sci-fi action-filled crypto world. Currently, focusing on cryptocurrency news and price data. With a passion for research and challenging my capabilities, I am slowly getting into the crypto arena to bring new insights every day.

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      Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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    US Senate Draft Bill Could Finally Bring Clarity to the Crypto Market

    Story Highlights
    • A new Senate draft bill finally defines digital commodities and hands Bitcoin and Ethereum oversight to the CFTC, giving the US crypto market long-awaited regulatory clarity.

    • The bill protects developers, creates a Digital Commodity Retail Office, and positions the CFTC to regulate crypto spot markets, signaling the strongest push yet for clear US crypto rules.

    The United States is finally on the verge of giving the crypto industry the clarity it has long awaited. The Senate Agriculture Committee has released a draft bill outlining how the crypto market should be regulated in the country. For years, crypto companies, investors, and developers have operated in confusion as different regulators claimed authority over the sector. This draft bill aims to fix that problem by establishing clear boundaries.

    Senate Draft Bill Brings Crypto Clarity

    One of the most significant changes in the draft bill is the formal definition of digital commodities. While this may sound simple, itโ€™s the missing piece in U.S. crypto regulation. Without a clear definition, agencies like the SEC and CFTC have spent years debating which assets fall under their jurisdiction.

    Under the proposed bill, digital commodities such as Bitcoin and Ethereum would come under the supervision of the CFTC. This gives investors and companies a straightforward understanding of where these assets legally belong. Instead of battling over control, regulators would finally have clearly defined roles, meaning fewer lawsuits and more certainty for the industry.

    New US Bill Protects Crypto Developers and Blockchain Infrastructure Builders

    The analyst also highlighted another key component of the bill: protection for developers and infrastructure builders. In the past, there were concerns that writing blockchain code or operating a node could lead to being labeled a financial intermediary. The new draft removes that fear by stating that simply creating or running blockchain software does not make someone a broker or money transmitter.

    This provision is crucial because innovation thrives when builders can experiment freely. With these protections in place, developers can focus on improving technology without worrying about potential legal repercussions.

    Retail Investors Finally Get Representation

    The bill also proposes the creation of a new Digital Commodity Retail Office within the CFTC. Its primary role will be to protect everyday investors and ensure that crypto trading remains fair and transparent.

    This marks a major shift in perception; crypto is now being treated less like a speculative experiment and more like a legitimate part of the financial system. The new office would also improve communication between regulators and the public, helping to build trust and transparency.

    CFTC to Regulate Crypto Markets

    Finally, the draft bill encourages collaboration with international regulators, recognizing that crypto operates across borders. Consistent rules among major economies would make institutions more confident about entering the market.

    If passed into law, the CFTC would become the primary regulator of crypto spot markets and exchanges. This could pave the way for increased institutional participation and make it easier to launch products such as altcoin-based exchange-traded funds (ETFs).

    Across the industry, thereโ€™s a growing sense that true regulatory clarity is finally within reach. This is the closest the United States has ever been to fully recognizing crypto as a legitimate component of its financial system.

    Never Miss a Beat in the Crypto World!

    Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.

    FAQs

    What does the new Senate crypto draft bill aim to solve?

    It creates clear rules for digital assets, ending years of regulatory confusion between agencies like the SEC and CFTC.

    How does the draft bill define digital commodities?

    It formally classifies assets like Bitcoin and Ethereum as digital commodities regulated by the CFTC, giving the market clear boundaries.

    Does the Senate bill protect crypto developers?

    Yes. It states that writing blockchain code or running nodes does not make someone a broker, reducing legal risk for builders.

    Who would regulate crypto markets if the bill passes?

    The CFTC would oversee crypto spot markets and exchanges, helping boost institutional confidence and new product development.

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