November 2025 marked a period of significant advancement in the effort to establish a comprehensive U.S. regulatory framework for digital assets. After a prolonged period of regulatory uncertainty, the past month delivered promising steps forward from both the legislative and executive branches, indicating a clear push toward regulatory clarity and market structure definition. For an industry seeking stability, November provided significant signals that major legislation is now a near-term prospect.

1. Release of the Senate Ag Committee's Bipartisan Draft Bill

On November 10, the Senate Committee on Agriculture, Nutrition, and Forestry, which has jurisdiction over the Commodity Futures Trading Commission (CFTC), released a comprehensive bipartisan discussion draft. This bill is a crucial component of the broader market structure legislation and builds upon the work of the House in defining the role of the CFTC.

The draft, championed by Chairman John Boozman (R-AR) and Senator Cory Booker (D-NJ), proposes to formally designate the CFTC as the primary federal regulator for the spot digital commodity market. It aims to provide explicit statutory authority where the CFTC's jurisdiction had previously been limited to derivatives.

Key provisions outlined in the discussion draft include:

• Definitional Clarity: The draft introduces specific legal definitions for terms such as "digital commodity," "digital commodity brokers," and "digital commodity dealers." It requires the CFTC to establish standards for qualified digital commodity custodians. The definition of "digital commodity" is carefully constructed to exclude payment stablecoins (which fall under separate legislation) and traditional banking deposits.
• Mandated Consumer Safeguards: The legislation requires the implementation of essential consumer protection rules, including rigorous customer fund segregation requirements, controls against conflicts of interest, clear customer disclosure standards, and explicit prohibitions on specific types of affiliated trading practices.
• Inter-Agency Coordination: To prevent regulatory gaps or overlap, the bill mandates joint rulemaking and coordination between the CFTC and the Securities and Exchange Commission (SEC) on several key issues.

The bipartisan backing for this draft is a strong indication of its potential viability. It signals a legislative consensus that the CFTC's principles-based approach is appropriate for the spot commodity aspects of the crypto market. However, there remain significant sections of bracketed text across the draft which require additional discussion — particularly the area of decentralized finance (DeFi). These items remain open for final negotiation ahead of a potential formal markup planned for early 2026.

2. Senate Banking Committee Signals Movement Toward Markups

In parallel with the Agriculture Committee's work, the Senate Committee on Banking, Housing, and Urban Affairs (which oversees the SEC) indicated an aggressive timeline for moving its own complementary legislation forward.

Senate Banking Chair Tim Scott (R-SC) publicly communicated the goal of holding markups and votes on the combined digital asset market structure bill in December 2025. This accelerated schedule suggests a high level of coordination between the two committees to prepare a unified package for the full Senate early next year. Initially, the anticipated timeline was September 30, and has been postponed several times. It remains to be seen if the December 2025 timeline will be achievable.

The Banking Committee's focus is expected to center on the SEC's jurisdiction, specifically addressing how digital assets are assessed under securities laws, defining categories like "ancillary assets," and providing a path for digital assets to transition from securities to commodities as they become more decentralized.

3. Mike Selig's Confirmation Progress for CFTC Chairmanship

Legislative progress was supported by movement on key leadership appointments, specifically the nomination of Michael Selig to serve as the permanent Chairman of the CFTC. On November 20, following a focused confirmation hearing, the Senate Agriculture Committee voted to advance Selig's nomination to the full Senate. Selig, who has a background that includes working as Chief Counsel to the SEC Crypto Task Force, is widely supported by crypto market participants.

His testimony to the Agriculture Committee focused on key regulatory principles:

• Expanded CFTC Role: Selig emphasized that the CFTC is the appropriate body for regulating spot digital commodity trading.
• Innovation and Regulation: He committed to developing regulatory practices that encourage domestic innovation, signaling a preference for clear rules over enforcement actions that can stifle emerging technologies.
• Strong Consumer Protection: He assured the committee that new regulations would prioritize robust consumer safeguards, including fund segregation and market integrity surveillance.

Selig's potential confirmation by the full Senate, which may occur before year-end, would install a leader explicitly aligned with the legislative direction of expanding the CFTC's authority. His leadership will be critical in guiding the agency through the transition and complex rulemaking required to implement the new market structure bill, once enacted.

4. Resolution of the Government Shutdown Allows Agencies to Resume Work

The reopening of the federal government following a more than month-long shutdown was a necessary precondition for the legislative and regulatory acceleration observed in November. The U.S. federal government resumed full operations on November 13. The 38-day operational pause had effectively halted non-essential activities, including important policy work and collaboration between the SEC, CFTC, and Congressional committees.

The end of the shutdown was essential for restoring regulatory and legislative momentum:

• Resumption of Inter-Agency Talks: Staff at the SEC and CFTC were able to re-engage with Congress, providing the technical input required to finalize the details within the legislative drafts.
• Confirmation Schedule: The pause had delayed the scheduling of important executive branch confirmation hearings, including the critical hearing and subsequent committee vote for Mike Selig.
• Rulemaking Resumes: Agencies could return to internal work on anticipated rulemakings related to topics like digital asset custody and market integrity, which are required for implementation of the new legislative framework.

5. Acceleration of SEC and CFTC Harmonization Efforts

The final significant development is the continued, mandated progress in inter-agency coordination between the SEC and CFTC, a vital step toward establishing a coherent regulatory ecosystem.

Regulatory harmonization has become a central tenet of the proposed legislation. The Senate Agriculture Committee’s draft explicitly requires joint rulemaking between the SEC and CFTC to address potential conflicts and overlaps.

The primary goals of this mandated coordination are to:

1. Establish consistent standards for firms that must register with both agencies.
2. Define treatment for "mixed" digital asset transactions (those with both commodity and security characteristics).
3. Ensure that regulatory provisions are not duplicative or unduly burdensome.

Successful harmonization is the key item for a functional, unified market structure. By requiring the agencies to collaborate on technical rules, Congress is aiming to eliminate the jurisdictional gray areas that have historically hindered the industry. This cooperative regulatory groundwork provides assurance that if the new legislative framework passes, it will be implemented with consistency and clarity, providing firms with a stable operational environment.