Overview
- An updated draft would expand CFTC authority over spot digital commodities, provide a $150 million bridge appropriation for implementation, and transition to funding through industry fees.
- The text omits stablecoin yield limits that triggered industry opposition to the Banking Committee’s version, while the Banking markup is now expected to slip to late February or March.
- No Democrat on the committee has publicly backed the draft, and lead negotiator Sen. Cory Booker has not endorsed it as the panel prepares for a likely party-line markup.
- Filed amendments include an ethics proposal to bar senior officials from profiting from crypto, a requirement that the CFTC have a full quorum before rules take effect, and limits on platforms linked to foreign adversaries.
- The bill targets intermediaries rather than protocols, outlines protections for noncustodial developers and DeFi based on control over funds and execution, and establishes a CFTC Office of the Digital Commodity Retail Advocate.