Senate Committee Advances Crypto Market Structure Bill with $150M CFTC Funding Boost

The Senate Agriculture Committee has unveiled updated legislation that WOULD empower the Commodity Futures Trading Commission with new authority and a $150 million war chest to police crypto exchanges. Chair John Boozman's "Digital Commodity Intermediaries Act" creates a formal framework for CFTC oversight of spot market intermediaries, targeting persistent consumer pain points like withdrawal delays and platform outages.

The bill transforms operational failures into regulatory triggers, requiring exchanges to maintain complaint resolution systems and liquidity buffers. This comes as lawmakers debate whether the underfunded CFTC can realistically supervise crypto markets while simultaneously handling its traditional derivatives mandate.

Separately, a brewing battle over loyalty rewards programs threatens to eliminate $6 billion in crypto incentives if Congress closes what exchanges call the "affiliate loophole." Banks argue the exemption creates an uneven playing field, while platforms warn overnight regulatory changes could destabilize consumer programs.