US Senate expands CFTC authority to oversee cryptocurrency markets

WalletManager · 2026-01-30T19:15:06+00:00

The US Senate is proposing a new regulatory program to give the Commodity Futures Trading Commission (CFTC) enhanced powers for overseeing spot crypto markets. The bill aims to unify standards for digital asset brokers and platforms, improve consumer protection, and clarify regulations for decentralized finance (DeFi). It allocates $150 million for initial implementation, ensuring CFTC's capability to maintain market integrity and consumer safety.

WalletManager

2026-01-30 19:15:06

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The U.S. Senate has initiated a new regulatory program that would grant the Commodity Futures Trading Commission (CFTC) extensive authority and financial resources to oversee spot cryptocurrency markets. The bill from the Agriculture Committee, chaired by John Boozman, aims to expand oversight over all major market participants to create a coherent regulatory framework.

Expanded Authority for Comprehensive Spot Market Oversight

The bill grants the CFTC the necessary authority to regulate brokers, trading platforms, exchanges, and custodians of digital assets under unified standards. This centralization of oversight aims to close gaps in the currently fragmented regulatory landscape. Notably, it proposes the establishment of a specialized office for retail investors to handle complaints and enforce feedback loops for consumers.

Consumer Protection and Clarity in DeFi Regulation

The proposal also addresses critical consumer protection issues: withdrawal delays, platform outages, and other operational risks will be systematically documented and investigated. At the same time, the bill seeks to more clearly define the regulatory boundaries for decentralized finance protocols (DeFi). This clarification will enable the CFTC to precisely delineate its oversight authority and reduce regulatory uncertainties.

Financial Resources for Regulatory Enforcement

To support the new regulatory tasks, $150 million will be allocated to fund initial implementation phases before fees are levied on market participants. This investment underscores the Senate’s commitment to a robust and well-funded regulation, enabling the CFTC to effectively exercise its expanded authority and ensure market integrity and consumer protection in the long term.

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