Senate’s Crypto Bill: CFTC’s New Power Play!

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The U.S. Senate, ever eager to assert its authority, has lately issued a draft of a crypto bill, which, if not carefully scrutinized, may expand the powers of the Commodity Futures Trading Commission to an alarming degree.

The U.S. Senate Agriculture Committee has, with commendable diligence, unveiled an updated draft of its crypto market structure bill. One might wonder, however, whether such diligence is matched by wisdom.

The new bill, it appears, expands the Commodity Futures Trading Commission’s (CFTC) authority over digital assets. A most curious development, for it seems the CFTC, previously content with regulating futures, now aspires to govern the whims of cryptocurrency.

Yet, key issues remain unresolved, and a hearing is scheduled for January 27. The outcome of this bill, one supposes, could reshape the regulatory landscape for the cryptocurrency industry-though whether for the better remains to be seen.

Updated Bill Released Ahead of Upcoming Senate Hearing

On Wednesday, the Senate Agriculture Committee, in a display of remarkable efficiency, released the updated draft text of its crypto market structure bill. One might hope that this efficiency extends to the resolution of its more pressing concerns.

This bill, it is claimed, expands the CFTC’s powers over digital assets, aiming to regulate the growing cryptocurrency market. A noble goal, though one wonders if the CFTC is prepared for the complexities of such a task.

The draft follows a previous 155-page document released in November, which included unresolved sections. It is a testament to the Senate’s commitment to thoroughness, though one might question the value of such thoroughness when the conclusions remain as elusive as ever.

BREAKING:

🇺🇸 U.S. Senate released an updated Crypto Market Structure Bill, Expands CFTC Authority Over Digital Assets.

A meeting is scheduled for January 27, putting U.S. crypto regulation back into focus.

– Ash Crypto (@AshCrypto)

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. One might commend the senators for their civility, though the bill itself remains as convoluted as ever.

The updated draft reflects input from multiple stakeholders, though some critical issues remain unsettled. It is a step forward, but one that seems to tread water rather than make progress.

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. A most promising prospect, though one doubts the details will bring much clarity.

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. It is a matter of great concern that the Senate, in its infinite wisdom, has yet to resolve such matters.

Some provisions, such as those related to anti-money laundering and noncontrolling blockchain developers, were removed from the draft. A curious choice, though one might speculate that the removal was motivated by a desire to avoid complications.

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. It is a most delicate balance, though one suspects the Senate will find a way to complicate it further.

If stablecoin issuers are allowed to offer interest to holders, it could change the competitive dynamics between the crypto market and traditional banks. A most intriguing prospect, though one wonders if the Senate has considered the implications of such a shift.

These unresolved matters mean that additional negotiations will be necessary before a final version of the bill is approved. A process as tedious as it is inevitable.

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. A most welcome development, though one might question whether the rules will be as clear as the committee claims.

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. A most commendable effort, though one might argue that “normalizing” crypto is akin to teaching a pig to dance-both are possible, but neither is particularly graceful.

Big move from Washington

The US Senate Agriculture Committee just dropped a draft of a crypto market structure bill ahead of the Jan 27 markup

This is another signal that regulators are shifting from enforcement-first to rule-makingClearer lines on market structure, clearer…

– BlockchainBaller (@bl_ockchain)

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. A most unfortunate development, though one might suspect that Coinbase’s withdrawal was less about concern and more about a desire to avoid entanglement in bureaucratic quagmires.

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. A most ambitious endeavor, though one can only hope the Senate’s efforts do not result in a regulatory framework as chaotic as a ballroom full of dancers who have never learned the steps.

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2026-01-22 15:27