Senate Agriculture Advances Crypto Market Structure Bill: CFTC Role and Key Amendments to Watch

The U.S. Senate Agriculture Committee made history on January 29, 2026, by advancing the Digital Commodity Intermediaries Act (DCIA).

In a narrow 12-11 party-line vote, the legislation became the first crypto market structure bill to successfully clear a Senate committee.

Key Takeaways

• The DCIA grants the Commodity Futures Trading Commission (CFTC) exclusive jurisdiction over spot markets for digital commodities like Bitcoin and Ethereum.
• New definitions officially classify memecoins as digital commodities, moving them away from the murky legal territory of unregistered securities.
• The bill requires a joint regulatory framework between the SEC and CFTC to be finalized within 18 months of enactment to ensure inter-agency harmony.

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Strengthening the CFTC Role in Digital Asset Oversight

The primary objective of the Digital Commodity Intermediaries Act is to fill the regulatory gap in the U.S. spot crypto markets.

By empowering the CFTC, the bill establishes a federal registration regime for digital commodity exchanges, brokers, and dealers.

Read more: FOMC 2026: Will Powell Pause or Pivot? What to Watch Now

Registered entities must adhere to strict requirements for customer fund segregation and the use of qualified digital asset custodians.

These safeguards are designed to prevent the commingling of assets, a major issue highlighted by previous industry collapses.

The legislation also mandates that the CFTC and SEC coordinate on "mixed transactions" that involve both securities and commodities.

To fund this new oversight, the bill introduces an annual fee structure for registered participants to provide the CFTC with necessary resources.

Intermediaries will be required to provide public disclosures regarding asset economics and source code before listing new digital commodities.

This move aims to professionalize the retail trading experience and reduce the likelihood of market manipulation across decentralized platforms.

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Key Amendments and the Road to Floor Action

Recent updates to the bill text have incorporated crucial definitions from the House-passed CLARITY Act regarding decentralized finance (DeFi).

Specifically, the DCIA now excludes non-controlling software developers and node operators from being classified as regulated financial intermediaries.

This "developer protection" amendment is viewed as a significant win for the Web3 ecosystem, ensuring that core infrastructure remains permissionless.

Another critical amendment addresses the stablecoin rewards debate, distinguishing between simple interest payments and activity-based incentives.

While companies are prohibited from offering yield for simply holding a stablecoin, they may offer rewards for loyalty programs or platform participation.

However, the bill faces a steep climb in the full Senate, as it must now be reconciled with a separate Banking Committee version.

The lack of bipartisan support in the committee vote suggests that significant negotiations are still required to secure a filibuster-proof majority.

FAQ

What is the Digital Commodity Intermediaries Act?

It is a U.S. Senate bill designed to create a federal regulatory framework for digital commodities under the oversight of the CFTC.

Does this bill classify all cryptocurrencies as commodities?

No; it specifically excludes securities, payment stablecoins, and banking deposits, while explicitly including Bitcoin, Ethereum, and memecoins.

How does the bill protect crypto software developers?

The DCIA includes provisions that exempt individuals who develop code or maintain nodes from having to register as financial intermediaries.

Will the SEC still have a role in crypto regulation?

Yes; the SEC retains jurisdiction over digital asset securities and will work jointly with the CFTC on rulemaking for mixed transactions.

What are "stablecoin rewards" under this new legislation?

The bill bans interest on stablecoin holdings but allows rewards tied to specific user activities like payments, transfers, or loyalty programs.

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