A bipartisan effort in the U.S. Senate aims to overhaul the federal regulatory framework for bitcoin and other digital assets.

Senators John Boozman (R-Ark.) and Cory Booker (D-N.J.) unveiled a draft bill on Monday that would shift primary oversight responsibilities from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC).

Bill details and proposed changes

The proposed legislation would empower the CFTC to regulate the market structure for bitcoin and similar digital assets, a move that has been widely supported within the industry.

Under the draft, most cryptocurrencies would be defined as digital commodities, placing them squarely under the CFTC’s jurisdiction.

Registration and new requirements

The bill would require companies operating in the digital asset space to register certain activities with the CFTC.

It also proposes enhanced disclosure rules for market participants and introduces new transaction fees for some digital asset activities.

These measures are intended to provide greater regulatory clarity and consumer protection.

Broader regulatory landscape

This legislative push follows ongoing debates over which federal agency should have primary authority over the fast-evolving bitcoin sector.

The shift to CFTC oversight is seen by many as a more industry-friendly approach compared to the SEC’s current posture.