U.S. Senate Introduces New Legislation: CFTC Will Gain Oversight of Cryptocurrency Spot Markets

AirdropworkerZhang · 2026-02-05T08:05:19+00:00

Chairman of the U.S. Senate Agriculture Committee, John Bozeman, has introduced a legislative proposal aimed at expanding the U.S. Commodity Futures Trading Commission (CFTC)'s regulatory authority over the cryptocurrency spot market, while establishing a Digital Retail Commodity Advocacy Office to protect investors' rights, and allocating $150 million to support related regulatory efforts.

AirdropworkerZhang

2026-02-05 08:05:19

Abstract generation in progress

Senate Agriculture Committee Chairman John Bozeman recently introduced a significant legislative proposal aimed at granting the U.S. Commodity Futures Trading Commission (CFTC) broader authority and corresponding funding to comprehensively regulate the cryptocurrency spot market. The proposal involves oversight of cryptocurrency asset transactions conducted through brokers, traders, exchanges, and custodians.

Important Expansion of CFTC Regulatory Authority

According to NS3.AI, this bill marks a major adjustment in the regulatory framework for the U.S. authorities overseeing the cryptocurrency market. The new legislation will clearly define the CFTC’s regulatory powers, enabling it to effectively oversee and control the spot cryptocurrency market, covering the entire industry chain of trading, storage, and related financial activities. This reflects policymakers’ growing concern over the digital asset market.

Retail Investor Protection Mechanism

The bill also proposes establishing a “Digital Retail Commodity Advocacy Office,” which will specifically handle complaints and appeals from ordinary investors, including issues like fund withdrawal delays and platform failures. This measure focuses on protecting retail users’ legitimate rights and interests by creating an official feedback mechanism to provide regulatory decision-making with foundational data and user perspectives, ensuring policies are more aligned with market realities.

Clear Definition of DeFi and Funding Support

The bill also seeks to improve legal definitions related to decentralized finance (DeFi) protocols to accurately delineate the scope and level of regulatory oversight. To support initial regulatory efforts, the legislation authorizes a $150 million fund to establish and improve the regulatory framework. This funding will help the CFTC and related agencies adapt more quickly to the complexities of the cryptocurrency market.

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