The U.S. Senate advances CFTC authority expansion; the definition of cryptocurrency spot market regulation will become clearer

The U.S. Congress has recently proposed a new plan regarding cryptocurrency regulation legislation. Senate Agriculture Committee Chairman John Boozman has recently introduced an important bill aimed at granting the U.S. Commodity Futures Trading Commission (CFTC) authority and funding to comprehensively regulate the cryptocurrency spot market. This move marks a significant step forward in the overall regulation of the digital asset market structure by U.S. regulatory agencies.

Specifics of the CFTC Regulatory Authority Expansion

According to relevant information, the bill proposes that the CFTC will oversee cryptocurrency spot transactions conducted through brokers, dealers, exchanges, and custodians. This means that the CFTC’s regulatory scope will expand from traditional futures markets to include the spot trading sector, filling the current regulatory gap. The proposal not only clarifies the functions of the regulatory agency but also lays a legal foundation for the development of subsequent detailed rules.

Clarification of DeFi Definitions: A Major Breakthrough in Regulatory Strength

Another key aspect of the bill is the definition and classification of decentralized finance (DeFi) protocols. By clearly defining DeFi-related concepts, regulators can more accurately determine which activities need to be included within the regulatory scope. This clarification in definitions is crucial for the entire industry, as it avoids the regulatory uncertainties caused by previous ambiguities and helps market participants better understand compliance requirements.

New Mechanism for Protecting Retail Investors’ Rights

According to the proposal, a new Digital Commodity Retail Investor Office will be established to handle complaints and applications from retail users. This agency will focus on issues such as withdrawal delays and platform failures that directly affect consumer rights, and will promote real-time market feedback to regulatory authorities. This measure indicates that U.S. regulators are strengthening market oversight while also striving to protect the rights of ordinary investors.

Funding Support for Initial Regulatory Implementation

To ensure the smooth implementation of these regulatory measures, the bill also proposes allocating $150 million for the startup phase of regulatory work. This funding will be used before the CFTC begins collecting related fees, providing sufficient resources to establish a complete regulatory framework and review mechanisms. This reflects the serious attitude and resource commitment of the U.S. Congress toward standardizing the cryptocurrency market.

The advancement of this legislative proposal indicates that U.S. regulators are actively promoting the institutionalization and standardization of the cryptocurrency market. Clear definitions and authority delineation will contribute to the long-term development of the entire industry.