Senate Ag Committee advances crypto bill to establish CFTC regulatory authority

In a significant move for the regulation of digital assets, the U.S. Senate Agriculture Committee voted on Thursday to advance a cryptocurrency market structure bill. This decision, which came down to a party-line vote of 12 Republicans in favor and 11 Democrats against, establishes the Commodity Futures Trading Commission (CFTC) with regulatory authority over digital commodities. This advancement is particularly noteworthy as it marks the first time a crypto market structure bill has progressed beyond a Senate committee. However, for the legislation to move forward, the Senate Banking Committee must also approve its own version of the bill, paving the way for a combination of the two proposals to be presented to the full Senate. Senator John Boozman, a Republican from Arkansas and the bill's sponsor, pushed this version of the legislation after an earlier draft lost bipartisan support. Last year, he collaborated with Senator Cory Booker, a Democrat from New Jersey, on an initial proposal, but Booker has since distanced himself from this latest version. Despite the partisan divide, Senator Kirsten Gillibrand, a Democrat from New York, expressed optimism about the Agriculture Committee's decision in a recent interview with CNBC, indicating hope that the measure would progress. The bill, which Boozman unveiled on January 21, seeks to empower the CFTC with new regulatory capabilities over digital assets. While Boozman acknowledged that there are still some unresolved policy issues, he believes the bill represents a culmination of extensive discussions and stakeholder input. Democrats presented several amendments aimed at tightening regulations, including a proposal to prohibit public officials, such as the president, from participating in the crypto industry, as well as measures to address foreign involvement in digital commodities. However, these amendments were not adopted. The Senate Banking Committee's review of its version of the bill was unexpectedly postponed, facing backlash from the crypto industry, including significant pushback from Coinbase. A new date for that committee's deliberation has not yet been established. Boozman expressed his eagerness to collaborate with the Banking Committee on various issues, particularly those related to scams associated with crypto ATMs. This story is still evolving, and further updates will be provided as they become available.