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The US Senate Agriculture Committee has introduced a new draft bill that finally defines what counts as “digital commodities” and what qualifies as “investment contracts.” Released on Monday by Senator John Boozman of Arkansas and Senator Cory Booker of New Jersey, the bipartisan proposal outlines how regulators plan to manage the fast-growing crypto market. Cody Carbone, CEO of the Digital Chamber, called it “the most consequential roadmap for how an institution is going to integrate digital assets into their business.” Cody said it’s a complete compliance manual for firms trying to understand what regulations they need to follow to legally operate in crypto. The bill, as reported earlier by Cryptopolitan, also builds a structure for how financial institutions can safely engage with crypto, setting the stage for formal oversight instead of the usual regulatory tug-of-war. Bitcoin and Ether declared digital commodities in new crypto bill The Senate’s crypto bill classifies Bitcoin and Ether as “digital commodities,” giving the Commodity Futures Trading Commission (CFTC) full authority to regulate them, a direct jab at former SEC chairman Gary Gensler position while he was in office. That designation is actually a really big deal for banks and funds that want to move crypto holdings into long-term strategies. By making this distinction, the Senate Agriculture Committee effectively splits the market into two worlds; regulated and unregulated. Tokens under regulation are expected to attract heavy institutional capital, more liquidity, and larger derivative markets. Unregulated tokens, on the other hand, will likely face pressure as investors flock to assets with clearer protections. The bill also forces crypto companies to separate their exchange, brokerage, custody, and trading operations, breaking apart the all-in-one model that’s been the norm in crypto for over a decade now. The draft also allows the CFTC to work jointly with the Securities and…

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Filed under: News - @ November 12, 2025 7:29 am