Senate Crypto Bill Update

Plans to vote on a U.S. Senate bill to regulate crypto this week have reportedly been postponed, but it could be revisited when lawmakers return to Washington in September.

Senate Agriculture Committee Chair Debbie Stabenow, D-Mich., has been working on this bill, with a markup hearing initially set for Wednesday. However, support from the top Republican on that committee, Sen. John Boozman, R-Ark., was not secured, as reported by Politico.

Cody Carbone, chief policy officer at The Digital Chamber, stated, “The legislation has been undergoing several iterations as industry leaders and committee members continue to provide input to Senator Stabenow’s team. Currently, it seems that consideration of the legislation will move to after the August recess to build more consensus. It’s encouraging that Senator Stabenow is reaching out to stakeholders for feedback.”

Boozman expressed appreciation for Stabenow’s efforts to address his concerns, stating they have “moved in the right direction.”

“Digital commodities and the regulatory issues they raise are complex,” Boozman noted. “Establishing a market regulatory regime for the first time requires due diligence and outreach to consider all unintended consequences, demanding a process that allows members adequate time to deliberate the legislation they are expected to approve.”

Stabenow mentioned working with the Senate Banking Committee on her bill and emphasized the need for a Republican senator to support it. Ron Hammond, director of government relations at the Blockchain Association, commented that, for Stabenow’s effort, time ran out to finalize it by the end of July. As lawmakers focus on their campaigns ahead of the November U.S. elections, the House begins its August recess this week, while the Senate recess starts at the week’s end, with lawmakers returning in the second week of September.

Stabenow’s bill aims to empower the U.S. Commodity Futures Trading Commission (CFTC) with authority over “digital commodities” and ensure it has permanent funding to oversee that market. The bill mandates that crypto firms maintain sufficient capital reserves and implement strict cybersecurity standards, along with providing retail customers accurate information about their assets.

Hammond affirmed that Stabenow’s bill is not dead and expects it to be reconsidered in September, noting ongoing progress from both sides of the aisle amid unresolved political and textual issues.

On the House side, a Republican-led crypto market structure bill was approved in May, granting the CFTC new jurisdiction over “digital commodities” while the SEC would supervise “digital assets offered as part of an investment contract.”

The two chambers would need to reconcile differences if their bills vary, which requires time, according to Hammond. Notably, the House bill does not connect with Stabenow’s proposal.

Updated on July 29 at 9:25 p.m. UTC to include statements from Boozman and Stabenow.