The U.S. Senate released a crypto bill draft expanding CFTC powers, with key issues unresolved ahead of Jan. 27 hearing.
The U.S. Senate Agriculture Committee has unveiled an updated draft of its crypto market structure bill.
The new bill expands the Commodity Futures Trading Commission’s (CFTC) authority over digital assets.
However, key issues remain unresolved, and a hearing is scheduled for January 27. The outcome of this bill could reshape the regulatory landscape for the cryptocurrency industry.
Updated Bill Released Ahead of Upcoming Senate Hearing
On Wednesday, the Senate Agriculture Committee released the updated draft text of its crypto market structure bill.
This bill expands the CFTC’s powers over digital assets, aiming to regulate the growing cryptocurrency market.
The draft follows a previous 155-page document released in November, which included unresolved sections.
Senator John Boozman, the Republican Chair of the Senate Agriculture Committee, discussed the changes made to the bill.
He noted that while differences remain, collaboration between himself and Democratic Senator Cory Booker has improved the legislation.
The updated draft reflects input from multiple stakeholders, though some critical issues remain unsettled.
This updated draft is a step forward, but it will still need further adjustments. The committee is scheduled to meet again on January 27 to discuss the bill in more detail.
Key Issues Still to Be Addressed
While progress has been made, several key issues are still unresolved in the new bill. For instance, the regulation of decentralized finance (DeFi) and stablecoins continues to be a point of contention.
Some provisions, such as those related to anti-money laundering and noncontrolling blockchain developers, were removed from the draft.
Lawmakers are also debating how to treat stablecoin rewards.
Some groups in the crypto industry and traditional banks have raised concerns over the impact of these rewards on the financial system.
If stablecoin issuers are allowed to offer interest to holders, it could change the competitive dynamics between the crypto market and traditional banks.
These unresolved matters mean that additional negotiations will be necessary before a final version of the bill is approved.
Related Reading: SEC Receives New Crypto Submissions on Self-Custody and DeFi Rules
January 27 Hearing and Next Steps for the Bill
The U.S. Senate Agriculture Committee released a draft crypto market structure bill ahead of the January 27 markup, signaling a shift to rule-making.
This provides clearer market structure, defined regulatory roles, and more certainty for the crypto industry. While slow, these drafts reduce long-term risks and help normalize crypto at the federal level.
The Banking Committee had originally planned to hold its own meeting to discuss a similar crypto market bill.
However, the meeting was postponed after Coinbase withdrew its support. The main concerns were how to regulate decentralized finance, tokenized equities, and stablecoin rewards.
Once both committees have resolved their versions of the bill, the final draft will go to the full Senate.
It will require 60 votes to pass, needing bipartisan support. This legislation, if passed, will likely have lasting effects on how digital assets are regulated in the U.S.