The Senate Agriculture Committee's draft bill on encryption grants the CFTC new powers, but key issues remain unresolved.

The U.S. Senate Agriculture Committee released a draft bill to regulate the cryptocurrency industry, granting the CFTC new powers. This follows the House of Representatives' passage of the Digital Asset Market Transparency Act in July, prompting the Senate to begin drafting its own related legislation. The draft, introduced by the Republican-led Senate Banking Committee, aims to delineate the jurisdictions of the SEC and CFTC and introduces the new concept of "auxiliary assets" to clarify which cryptocurrencies do not fall under the category of securities. Given the Senate Agriculture Committee's jurisdiction over the CFTC, its draft is particularly crucial. This 155-page draft defines digital goods and establishes the CFTC's regulatory framework.