On November 10, Senate Agriculture Committee Chairman  John Boozman (R-AR) and Senator Cory Booker (D-NJ) released a bipartisan discussion draft proposing to grant the CFTC exclusive jurisdiction over spot digital commodity markets. The draft builds on the House-passed CLARITY Act from July and would establish statutory definitions for digital commodities — explicitly excluding securities, payment stablecoins, collectibles, and deposits — and create a CFTC-led registration and oversight regime for exchanges, brokers, and dealers.

Under the proposal, digital commodity trading exchanges would be required to register with the CFTC and comply with standards for governance, resources, systems, surveillance, and conflict management. The draft mandates segregation of customer funds, conflict of interest safeguards, customer disclosure obligations, and prohibits exchanges and affiliates from trading on their own account. Exchanges could only list digital commodities that are not “readily susceptible to manipulation” and must certify to the CFTC that assets meet statutory requirements, subject to CFTC review and potential disapproval.

The draft directs the CFTC and SEC to coordinate on rulemakings to avoid duplicative or conflicting requirements, including joint rules for mixed digital asset transactions and portfolio margining. It includes protections for self-custody of digital assets and clarifies that noncontrolling blockchain developers would not be classified as money transmitters under federal law. To support its expanded mandate, the CFTC would be authorized to collect annual fees from regulated entities. Several policy questions remain open for stakeholder input, as indicated by bracketed sections in the draft.

In the announcement, Senator Boozman emphasized the CFTC’s suitability to oversee spot digital commodity trading and the need for adequate resources and staffing, calling the draft an “important marker” for final policy language. Senator Booker described the draft as a “first step” highlighting concerns about CFTC resources, regulatory arbitrage, and safeguards against misconduct. Both senators stressed the importance of clear rules to protect consumers and ensure market integrity as digital asset markets evolve.