Congress to debate bill assigning CFTC oversight of Bitcoin

Members of Congress met Tuesday to debate a Senate Agriculture Committee draft bill that would assign oversight of Bitcoin to the Commodity Futures Trading Commission, classifying it as a commodity, while leaving investment contracts and similar arrangements under the Securities and Exchange Commission.

The draft bill was advanced out of committee on a party-line vote. It proposes a formal split in regulatory responsibility: the CFTC would oversee Bitcoin and other commodity-like digital assets, and the SEC would retain jurisdiction over tokens or arrangements that meet the legal test for investment contracts.

Senators involved in the measure signaled ongoing negotiations. Senator John Boozman outlined next steps after the committee vote. Senator Kirsten Gillibrand commented on the draft during a Senate session. Senate Democrats held a closed-door meeting on December 8, 2025, to review a GOP offer tied to the legislation. A bipartisan meeting facilitated by the White House was described by the Blockchain Association as an important step toward agreement on market structure.

Lawmakers and industry representatives say clearer federal rules are a factor in where crypto firms base operations. Many companies have moved or listed products in jurisdictions with established rules, including the European Union, which adopted Markets in Crypto-Assets regulation, and the United Arab Emirates. Industry estimates cited by supporters indicate a market-structure framework might open access to large pools of institutional capital that have stayed out of U.S. crypto markets because of legal uncertainty.

The draft builds on legislative work that began in 2022, including the original Lummis-Gillibrand proposal and the FIT21 initiative. Backers describe the current Senate Agriculture Committee text as a product of compromises intended to balance investor protections and market development. Critics across the political spectrum have pushed for clearer definitions of which digital assets qualify as commodities versus securities and for stronger consumer safeguards.

If enacted, the measure would formalize roles that have largely been defined through enforcement actions and agency guidance rather than by statute. Congressional debate is expected to continue as lawmakers work on jurisdictional boundaries, disclosure requirements and procedures for coordination between the CFTC and the SEC.