Washington – Senate Agriculture Committee to Tackle CFTC Leadership Gap in Crypto Market‑Structure Bill Markup
Washington, D.C., Jan. 24 – Lawmakers are set to reconvene on Capitol Hill after a weekend of snow‑related disruptions, with the Senate Agriculture Committee slated to hold a markup on the Digital Commodity Intermediaries Act (DCIA) on Thursday. The proposed legislation would lay out the United States’ first comprehensive framework for digital‑asset market structure, but a cluster of amendments – most notably one targeting the leadership composition of the Commodity Futures Trading Commission (CFTC) – is expected to dominate the debate.
Background
The DCIA has been moving through the Senate for several months, aiming to delineate the respective responsibilities of the Securities and Exchange Commission (SEC) and the CFTC over crypto‑related activities. Earlier this month, the Senate Banking Committee postponed its own markup after Coinbase withdrew its support for the bill, leaving the Agriculture Committee’s session as the only active venue for advancing the proposal.
The committee has released eleven amendments for public review. They range from proposals to bar elected officials and White House staffers from interacting with the crypto industry, to measures compelling digital‑asset firms to compete on the same credit‑card swipe‑fee terms that traditional merchants face, and to provisions intended to safeguard U.S. markets from foreign interference.
The CFTC Amendment
The most closely watched amendment comes from Minnesota Senator Amy Klobuchar. In response to a prolonged vacancy at the federal futures regulator, she introduced language that would prevent the DCIA from becoming effective until the Senate confirms at least four members of the five‑seat CFTC panel.
The amendment was motivated by a series of resignations that left the agency severely understaffed. Acting Chair Caroline Pham stepped down in late 2025, and several other commissioners have not been replaced. As of now, only Chairman Michael Selig – a Republican appointed by former President Donald Trump – remains in his role.
Klobuchar’s proposal seeks to ensure that any new market‑structure rules are overseen by a fully functional commission, thereby reducing the risk of regulatory gaps or unilateral decision‑making. “We cannot entrust the stability of the nation’s futures markets to a committee that is operating with a skeletal staff,” the senator explained in a recent briefing.
Political and Industry Context
The DCIA’s journey has been anything but smooth. Earlier drafts sparked pushback from both Democrats and Republicans, as well as from industry groups wary of provisions covering stable‑coin rewards, tokenized equities, decentralized finance (DeFi) mechanisms, and ethical standards for market participants. Some legislators argue that the bill’s approach to assigning jurisdiction between the SEC and CFTC is too rigid, while certain lobbying outfits fear the bill could introduce unnecessary compliance burdens.
With the Banking Committee’s markup still pending – it has not yet set a new date after its original Jan. 15 session was scrapped – the Agriculture Committee’s decisions could shape the final shape of the legislation. Whether the two committees will eventually merge their efforts, or whether one will dominate the final text, remains uncertain.
Potential Implications
- Regulatory Certainty vs. Delay – If Klobuchar’s amendment is adopted, the DCIA’s implementation could be postponed for months, possibly until the Senate confirms additional CFTC commissioners. While this would provide a fully staffed regulator to enforce the rules, it could also stall market participants who are awaiting clearer guidance.
- CFTC’s Operational Capacity – A commission operating with only one confirmed member raises concerns about its ability to effectively oversee futures markets, especially as crypto‑futures continue to grow in volume. Strengthening the commission could improve oversight but also necessitates a longer confirmation process in a politically divided Senate.
- Industry Readiness – Crypto exchanges, custodians, and other service providers have already begun adjusting compliance programs in anticipation of the DCIA. A delay could give them more time to align with forthcoming requirements, but prolonged uncertainty may also hinder investment and innovation.
- Political Leverage – The amendment may become a bargaining chip in broader negotiations over the bill, giving lawmakers who support a robust CFTC a lever to push for other regulatory concessions or to extract broader reforms in the crypto space.
Key Takeaways
| Point | Details |
|---|---|
| Markup Timing | Thursday, Senate Agriculture Committee, after weather‑related postponements. |
| Core Bill | Digital Commodity Intermediaries Act – aims to set a U.S. digital‑asset market‑structure regime. |
| Major Amendment | Senator Klobuchar’s proposal to delay the law’s activation until at least four CFTC commissioners are confirmed. |
| Current CFTC Status | Only Chairman Michael Selig remains after the departure of Acting Chair Caroline Pham and other members in 2025. |
| Other Amendments | Prohibit federal officials from crypto lobbying, enforce competition on credit‑card swipe fees, address foreign market interference. |
| Uncertainty | It is unclear which amendments will survive the markup or how the Agriculture Committee’s version will later be reconciled with the Banking Committee’s pending work. |
| Potential Impact | A fully staffed CFTC could improve regulatory oversight but may also delay the rollout of the DCIA, affecting market participants awaiting clarity. |
Outlook
The upcoming markup will serve as a litmus test for how Congress balances the urgent need for a coherent crypto regulatory framework with the practical realities of agency staffing. Stakeholders on both sides of the aisle appear poised to use the CFTC amendment to sharpen their negotiating positions. As the Senate navigates these amendments, the crypto industry will be watching closely, aware that any delay or alteration could reshape its compliance roadmap for the foreseeable future.
Source: https://cointelegraph.com/news/cftc-commissioners-amendment-market-structure-bill-markup?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
