by Vincent Muthee
The U.S Senate Agriculture Committee released the crypto market structure bill draft on Monday, November 10, marking a big step toward clear crypto regulation. Committee Chair John Boozman (R-Ark.) and Sen. Cory Booker (D-N.J.) unveiled the Bipartisan proposal, which sets out a new framework for digital asset commodities.
The draft targets current confusion in crypto rules by defining digital commodities and expanding the Commodity Futures Trading Commission (CFTC)’s authority over spot markets. It also includes direct language supporting Bitcoin, protecting self-custody, and giving companies a clear path to add crypto to their balance sheets. This bipartisan effort reflects growing pressure to give the crypto industry a clear legal framework.
Bitcoin Officially Defined as a Digital Commodity, Not a Security
Among the most revolutionary sections of the bill is the formal definition of a digital commodity by the Congress. The bill formally defines “digital commodities,” separating assets like Bitcoin from tokens that depend on a central issuer.
Bitcoin (BTC) meets this definition since it runs independently, with no managerial oversight or developer control. Bitcoin has often faced heated debate on whether it is a commodity or security. However, the Bull Theory observes that the bill now defines Bitcoin not a security but a commodity.
US SENATE AG COMMITTEE HAS RELEASED CRYPTO MARKET STRUCTURE DRAFT BILL.
Here’s what’s inside:
➯ Digital Commodities Definition
The draft formally defines digital commodities and gives the CFTC primary authority over their trading, ending the years-long turf war with… pic.twitter.com/s1k25UVwEf
— Bull Theory (@BullTheoryio) November 11, 2025
By labeling BTC a commodity, the Congress gives the cryptocurrency a legal footing in the U.S legal statutes. This action clears up a huge fog of insecurity which has traditionally restricted larger institutional involvement in Bitcoin. It gives investors and companies confidence that Bitcoin’s legal identity is no longer up for debate.
CFTC to Supervise Spot Bitcoin Exchanges
The market structure bill grants the Commodity Futures Trading Commission (CFTC) direct oversight of regulated spot exchanges, an unprecedented step toward cleaning up the crypto market’s structural gaps. Lack of clear federal oversight kept Bitcoin spot markets in a legal grey area, where they were dependent on either state-level regulations or self-voluntary adherence depending over the years.
However, the new proposal will impose a high standard of market surveillance, custody, and trading practices on the Bitcoin exchanges. This is meant to deter manipulation and enhance transparency and provide a playing field to both retail and institutional investors.
Concisely, Wall Street can now fully trust Bitcoin’s infrastructure. Upon the approval of the market structure bill, regulated spot markets could pave the way for Bitcoin ETFs, structured products, and new financial instruments built directly on the asset’s market activity.
Self-Custody and Peer-to-Peer Transactions Protected
Another major win for Bitcoin users lies in the bill’s explicit protection of self-custody and peer-to-peer transactions. For the first time, the U.S law will finally acknowledge the right of individuals to have their own personal keys and conduct transactions with each other without intermediaries.
This recognition supports the original principles of Bitcoin financial autonomy and individual ownership. It implies that despite the tightening of regulatory structures that surround exchanges and custodians, individual autonomy is not broken.
Practically, it provides the user with the legal confidence that self-custody wallets, open-source software and P2P networks are not illegal. For a technology that emerged as a response to mistrust in central authority, this provision cuts right to the core of the Bitcoin identity.
Corporate and Institutional Clarity to Accelerate Crypto Adoption
The accounting and legal uncertainty surrounding Bitcoin has long made corporate treasuries reluctant to put Bitcoin on their balance sheets. However, that barrier may soon fall with the passing of the crypto market structure bill. Coupled with the financial accounting standards board (FASB) regulations that a crypto asset could be treated using fair-value accounting, the bill will enable CFOs to consider Bitcoin as a valid treasury asset.
FASB Fair Value Accounting Rules for Crypto Assets MANDATORY ADOPTION DATE FOR ALL ENTITIES: December 15th, 2024.
This is when crypto assets will finally “be measured AT THEIR FAIR MARKET VALUE.”
This means that the price of all crypto assets held on bank balance sheets… https://t.co/VJ9CPmUtxN pic.twitter.com/kOeG6vlPqB
— SMQKE (@SMQKEDQG) December 3, 2024
This may lead to an institutional adoption wave. Businesses are now able to rationalize the existence of Bitcoin within a specific legal and regulatory framework, and with well-defined compliance routes and CFTC-registered custodians.
In addition to corporate finance, the bill allows the introduction of financial products that are backed by Bitcoin, credit facilities, money-market equivalents, and insurance solutions. With CFTC authority and defined custody standards, the groundwork for Bitcoin-based financial rails is now visible.
The Road Ahead
The crypto market structure bill draft release marks the strongest pro-Bitcoin signal Congress has ever made. It defines the legal status of Bitcoin and secures the rights of its users and the prospective ways through which the U.S markets can safely incorporate the digital commodities to the financial system. Although the bill would most probably undergo revisions and committee discussion, market observers are excited for how it could change crypto adoption, once approved.
#blockchain #crypto, #decentralized, #distributed, #ledger
