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Senate panel schedules December vote on landmark crypto bill
The U.S. Senate Banking Committee will hold a vote in December 2025 on comprehensive cryptocurrency market-structure legislation, Committee Chair Tim Scott said on Fox News. The draft bill aims to create a single federal framework for digital assets and would formally classify Bitcoin and Ether as digital commodities under the Commodity Futures Trading Commission (CFTC), resolving the longstanding jurisdictional friction between the CFTC and the Securities and Exchange Commission (SEC).
Key provisions: commodities designation and exchange rules
Under the proposed legislation, the CFTC would take primary authority over Bitcoin and Ether as commodities. Exchanges would face new compliance requirements designed to protect customers and strengthen market integrity: segregation of customer funds, mandatory conflict-of-interest controls, and improved disclosures for trading platforms. Lawmakers say these measures address the structural weaknesses exposed by exchange failures such as FTX and aim to reduce counterparty risk for retail and institutional investors.
Bipartisan negotiations and DeFi disagreements
Bipartisan talks are ongoing, with lawmakers split chiefly over how to regulate decentralized finance (DeFi). Democratic members have raised concerns about money-laundering risks and systemic vulnerabilities tied to permissionless DeFi protocols, while some Republicans favor lighter-touch rules to preserve innovation. DeFi regulation remains one of the most contested areas in the draft legislation.
Next steps and potential impact on crypto markets
If the committee approves the bill, Scott intends to advance it to the full Senate in early 2026. Legislative projections suggest President Donald Trump would sign the bill into law if it reaches his desk. Passage would establish clearer regulatory boundaries for exchanges, funds, and institutional participants, coinciding with growth in cryptocurrency exchange-traded funds (ETFs) and rising institutional adoption. For market participants, a unified federal regime could reduce legal uncertainty and encourage further investment, though DeFi stakeholders will watch the final text closely.
This development marks a major step toward federal oversight of digital assets and could reshape how U.S. regulators oversee crypto markets and protect investors.
Source: crypto
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