Two Senate committees have released competing drafts to clarify regulatory oversight of digital assets in the US, reigniting the debate between the SEC and CFTC. Building on a House-passed bill, these proposals seek to define roles for policing cryptocurrencies like Bitcoin and Ethereum. The drafts promise changes to market structures, disclosures, and exchange operations.
Washington has long debated regulatory authority over digital assets. The Digital Asset Market Clarity Act of 2025 passed the House this summer, but the Senate had not acted until now. Two Senate committees released competing drafts in November 2025, each aiming to create order in the SEC-CFTC turf war.
The Senate Agriculture Committee's draft, led by Senators John Boozman and Cory Booker, expands the CFTC's role over “digital commodities” and their spot markets. It requires registration for exchanges, brokers, and dealers, similar to traditional commodities oversight. Intermediaries must use qualified custodians and segregate customer assets to avoid conflicts. The bill allows joint CFTC-SEC rulemaking for overlapping areas and builds on the House Clarity Act. US Bitcoin platforms would register as digital-commodity exchanges, meeting new capital and custody rules with enhanced retail protections. ETFs would remain under SEC jurisdiction, while the CFTC focuses on reporting and surveillance for better market insights.
In contrast, the Senate Banking Committee's Responsible Financial Innovation Act addresses “ancillary assets”—fungible digital commodities from investment contracts. It grants the SEC authority over these, mandating disclosures on token distributions, governance, and risks. The SEC has about two years to define an “investment contract” and introduces a decentralization certification process. Projects like Ethereum could start under SEC oversight but "graduate" to commodity status once governance decentralizes sufficiently. Bitcoin would likely fall under CFTC, while enterprise-linked tokens stay with the SEC until proven decentralized. Exchanges may need dual registration, stricter capital rules, and transparent trading.
Timing remains uncertain, with the Banking draft setting rulemaking deadlines but the Agriculture draft leaving questions open. Both require future coordination. The House bill has passed, but Senate discussions continue amid opposition. These drafts outline potential evolutions for spot venues, token classifications, and exchange compliance, mapping the ongoing regulatory debate.