U.S. senators are preparing to weigh amendments to a crucial crypto market structure bill, including proposals concerning the Commodity Futures Trading Commission (CFTC) and ethical considerations for public officials. The Senate Agriculture Committee is scheduled to review the proposed legislation, which aims to clarify federal oversight of cryptocurrencies, define regulatory jurisdiction, and establish clearer rules for market participants. The markup was moved to January 29th due to weather.
CFTC Authority and Implementation
A key aspect of the debate revolves around the authority and staffing of the CFTC, the agency slated to gain significant power in regulating digital commodities. With only its chair, Michael Selig, currently in place, concerns have been raised about the agency's capacity to effectively enforce sweeping crypto oversight. Senator Amy Klobuchar has introduced an amendment that would delay the law's implementation until the CFTC is fully staffed, arguing that a complete commission is necessary to ensure regulatory effectiveness and consistent enforcement. Chairman John Boozman of the U.S. Senate Committee on Agriculture, Nutrition, and Forestry released updated legislative text that would give the Commodity Futures Trading Commission (CFTC) new authority to regulate digital commodities.
Ethics and Conflicts of Interest
Several Democratic senators are pushing for ethics-focused amendments to prevent public officials from potentially profiting from digital asset interests while in office. Senator Michael Bennet has proposed incorporating the Digital Asset Ethics Act into the broader market structure bill. This measure seeks to restrict U.S. government officials from benefiting financially from crypto-related ventures during their tenure. These efforts reflect growing concerns about potential conflicts of interest, particularly those involving former President Donald Trump and his reported ties to a crypto platform. Senator Elizabeth Warren and other Democrats have consistently advocated for stricter safeguards to ensure that crypto legislation does not enable self-dealing by elected officials or senior policymakers.
Additional Proposed Amendments
Senators are expected to consider a range of other amendments. Senator Dick Durbin is proposing new anti-fraud provisions for crypto ATMs and a ban on bailouts of crypto issuers. Senators Tommy Tuberville and Jerry Moran are seeking to restrict participation by foreign adversaries in U.S. crypto markets.
Industry and Political Considerations
The Senate Agriculture Committee's efforts to advance the Digital Commodity Intermediaries Act (DCIA) requires support from both parties. White House Crypto Executive Director Patrick Witt stated that there will be a crypto market structure bill. It is expected to take around two hours. After voting on amendments, committee members will then vote on whether to advance the bill out of committee and send it to the Senate floor. The legislation will require Democratic support and must ultimately be reconciled with the Senate Banking Committee's market structure proposal before advancing to the full Senate.
