From regulatory patchwork to digital commodity markets: how the bipartisan senate draft could reshape U.S. crypto

For years, the U.S. digital-asset market has operated in a regulatory patchwork – split between agencies, shaped by court cases and enforcement rather than clear rules.

In November 2025, Senate Agriculture Committee Chairman John Boozman (R-AR) and Senator Cory Booker (D-NJ) introduced the Bipartisan Market Structure Discussion Draft, which for the first time would give the CFTC a clear mandate over the spot market for digital commodities, with built-in consumer protections, coordination with the SEC and dedicated funding.

Building on the House-passed CLARITY Act and designed to be paired with the Senate Banking Committee’s SEC-focused bill, this draft is the closest the U.S. has come to a comprehensive federal playbook for institutional-grade digital-asset activity – from bitcoin and ether to tokenized financial instruments.

1. U.S. digital commodity markets: the legal foundation of a new phase

The Bipartisan Market Structure Discussion Draft is not yet a final bill, but it already sketches the core legal framework for U.S. digital commodity markets.

At its core, the draft:

Defines key concepts – adds statutory definitions of “digital asset” and “digital commodity” and updates the Commodity Exchange Act to cover digital commodity exchanges, brokers, dealers, custodians and associated persons.
Gives CFTC primary spot-market authority – empowers the CFTC to supervise spot (cash) trading in digital commodities, including registration of intermediaries, core conduct and governance standards, and segregation of customer assets with clear rules for their treatment in insolvency.
Mandates CFTC–SEC coordination – requires the two agencies to conduct joint rulemakings to avoid overlaps and clarify the boundary between digital commodities and digital asset securities.

As a discussion draft, it still contains bracketed, unresolved issues (including the securities perimeter, DeFi and AML), leaving room for market feedback – but the regulatory direction is already obvious.

2. From fragmented oversight to a digital-commodity regime

The Boozman–Booker draft aims to replace today’s case-by-case, enforcement-driven approach with a coherent CFTC-led digital-commodity regime.

2.1. Market integrity and customer protection

Key safeguards include:

Segregation of customer assets – customer funds and digital assets must be kept separate from firm proprietary assets.
Conflict-of-interest controls – structural separation of exchange, brokerage, custody and proprietary trading functions within groups.
Limits on affiliated trading and abusive practices – restrictions targeting self-dealing, wash trading and similar conduct.
Standardised disclosures – clear information on listed assets, fees, conflicts and key risks.
Listing standards – trading limited to digital commodities not readily susceptible to manipulation, based on defined criteria and ongoing monitoring.

2.2. Registration categories and new roles

The draft establishes a CFTC registration framework for:

digital commodity exchanges;
digital commodity brokers and dealers;
qualified digital commodity custodians;
associated persons of these entities.

Registered firms are subject to prudential, conduct and reporting requirements. The draft also creates a Retail Advocate for the spot digital-commodity market and a dedicated CFTC funding stream financed by regulated entities.

3. New opportunities for businesses and investors

For the crypto industry, this draft is not just a rulebook – it is a roadmap for institutional-grade participation in U.S. digital assets.

For businesses and platforms the draft offers:

Regulatory clarity for key assets – large-cap tokens like bitcoin and ether are expected to sit clearly in the “digital commodity” bucket, removing a major blocker for banks, funds and public companies.
A single federal framework – exchanges, brokers, dealers and custodians can build U.S. operations around a unified CFTC regime instead of a patchwork of state money-transmitter laws and informal guidance.
Institutionally familiar market structure – separation of trading, custody and brokerage functions and predictable CFTC supervision make digital-asset infrastructure look and feel closer to traditional capital markets.

For institutional and retail investors, the draft promises:

Stronger protection and clearer risk allocation – segregated custody, listing standards and conflict-of-interest rules directly address failures seen in prior exchange collapses and “rug pulls.”
A clearer split in the token universe – regulated digital commodities are likely to attract deep institutional liquidity and robust derivatives, while unregulated tokens remain higher risk.
A bridge to tokenized finance – coordinated CFTC–SEC frameworks lay the groundwork for tokenized securities and other traditional instruments to operate onshore, rather than being pushed into regulatory limbo or offshore structures.

4. The role of Manimama law firm

For global crypto, fintech and tokenization projects, the Boozman–Booker draft is both a risk and a chance to secure first-mover advantage. Manimama Law Firm helps clients by:

Regulatory mapping & strategy – analysing how digital-commodity definitions, listing standards and segregation rules affect your current or planned U.S. structure, and aligning them with SEC, MiCA and other regimes.
Market-access structuring – designing U.S.-facing models for exchanges, OTC desks, liquidity providers, custodians and tokenization platforms, with a clear split between digital commodities and digital asset securities.
Governance & custody frameworks – building separation between trading, brokerage, custody and proprietary activities, and developing custody setups (including self-custody-friendly models) that meet CFTC customer-asset expectations.
Policy and rulemaking engagement – preparing targeted comments and technical input on open issues such as DeFi, AML obligations and the securities perimeter.
Documentation and internal rules – updating Terms of Use, risk disclosures, listing and custody agreements, and core policies (AML, conflicts, governance, technology) to fit a future CFTC-led digital-commodity regime.

💡 Our goal is not only to help clients comply with future rules, but to leverage regulatory clarity as a competitive advantage – positioning platforms and issuers to be among the first fully compliant digital-commodity market participants in the United States.