The Senate Agriculture Committee approved its version of digital asset market structure legislation on a party-line vote, while important senators on another committee continue to negotiate their portion of the contentious bill.
The Agriculture Committee’s proposal would make the Commodity Futures Trading Commission the lead regulator of a large portion of the digital asset business, granting it authority to control spot commodities such as Bitcoin for the first time. Historically, the CFTC controlled commodity derivatives, such as wheat futures, rather than spot commodities.
Senators Cory Booker and Adam Schiff stated on Thursday that Democratic senators are interested in advancing bipartisan legislation pertaining to the structure of the cryptocurrency market, but they contend that the bill need more robust ethical protections. Given that his family’s wealth has increased significantly as a result of several cryptocurrency-related transactions, Democrats have frequently voiced worries about possible conflicts of interest for President Donald Trump.
An amendment to prohibit lawmakers, the president, and the vice president from using digital assets while in office was proposed by Colorado Democrat Senator Michael Bennet, but it was turned down.
John Boozman, the chairman of the Senate Agriculture Committee, stated that while he saw the issue behind the amendment, the ethical provisions were “way beyond” the panel’s purview and would have to be discussed on the Senate floor.
Following the discussion, Boozman told reporters that he expected to begin negotiations on the bill with Booker and other Democrats who are open to cryptocurrency as early as Thursday afternoon.
Regarding the measure, Boozman stated, “We felt that we needed to move it forward because we reached a little bit of an impasse.” “Both sides recognize that regulation of the cryptocurrency industry is necessary to safeguard the public, as it is currently a Wild West.”
Senate Banking Committee
A parallel market structure legislation in the Senate Banking Committee has stalled due to attempts to limit cryptocurrency exchanges’ ability to give rewards based on customer token holdings. The banking industry has been staunchly opposed to such incentive programs.
Officials from the banking and cryptocurrency sectors will gather at the White House on Monday to talk about the legislation. According to persons familiar with the arrangements who were not permitted to comment on the record, if a deal isn’t struck by next week, the meeting may be postponed.
In an interview on Thursday, White House cryptocurrency adviser Patrick Witt stated that he was “encouraged by the Democrats’ comments, despite the partisan nature of it, that they’re committed to working to get this legislation right and passing it out of the full chamber.”
Earlier this month, Coinbase Global Inc. CEO Brian Armstrong stated that it appeared “risky” to proceed with the Senate Banking bill because senators were scheduled to vote on amendments that would essentially stop the incentives.
As legislators turn their attention to possible housing legislation, that proposal will probably be further postponed. The Senate Banking Committee’s action comes in response to efforts from the Trump administration to address prices for Americans in advance of this year’s congressional elections.
