Senate Agriculture Committee To Debate Crypto Market Bill With Ethics Amendments

TLDR

• Sen. Michael Bennet proposes banning lawmakers, President, and Vice President from certain crypto transactions.
• Sen. Amy Klobuchar’s amendment delays the bill until the CFTC has four commissioners.
• The Senate Agriculture Committee must gain bipartisan support to pass the crypto market bill.
• Disagreements stall Senate Banking Committee’s crypto bill while the Ag Committee makes progress.

The Senate Agriculture Committee is preparing for a markup session next Tuesday to debate and vote on a new cryptocurrency market structure bill. This bill seeks to regulate and oversee digital asset transactions in the United States. Ahead of the meeting, several amendments have been filed, with a notable one from Sen.

Michael Bennet (D-Colo.), which focuses on ethics. The proposed “Digital Asset Ethics Act” aims to prevent “covered individuals,” such as the President, Vice President, and lawmakers, from engaging in certain digital asset transactions.

The Ethics Amendment and Its Purpose

The primary purpose of Sen. Bennet’s amendment is to address concerns regarding the involvement of public figures, including President Donald Trump, in cryptocurrency ventures. Reports indicate that Trump has earned approximately $1.4 billion through his cryptocurrency dealings, which include investments in decentralized finance (DeFi) projects and stablecoins. 

The proposed amendment seeks to eliminate potential conflicts of interest by prohibiting these individuals from participating in specific financial transactions involving digital assets.

Bennet’s proposed changes appear to be in response to worries that public figures might leverage their positions for personal gain in the rapidly growing digital asset market. “It’s crucial that we maintain ethical standards in how elected officials handle their financial affairs,” Bennet said in a statement regarding the amendment.

Other Proposed Amendments to the Crypto Bill

In addition to the ethics-focused proposal, other amendments have been filed to further refine the bill. One significant proposal comes from Sen. Amy Klobuchar (D-Minn.), which aims to delay the bill’s implementation until the Commodity Futures Trading Commission (CFTC) has at least four commissioners in place.

Currently, the CFTC has only one commissioner, its chair, Michael Selig. The commission needs more members to effectively carry out its duties under the new legislation.

A separate amendment seeks to address concerns about “fake transactions” at digital asset kiosks. The provision aims to prevent fraudulent activities at points of sale for cryptocurrencies, further enhancing the integrity of digital asset transactions.

The Bipartisan Challenge for the Crypto Bill

For the bill to pass the Senate, it requires a majority vote, meaning it needs 60 votes in favor. This will necessitate support from both Republicans and Democrats. The committee’s ability to collaborate has been seen as an advantage over the Senate Banking Committee, which recently faced difficulties in moving forward with a similar bill.

While the Senate Banking Committee struggled to gain consensus due to differences over key issues like the regulation of tokenized equities and decentralized finance, the Agriculture Committee appears to have found more common ground.

“We have made progress in this bill, despite disagreements on certain issues,” said Republican Chair Sen. John Boozman. The committee hopes that this bill can gain the necessary bipartisan support to move forward in the Senate.

The Path Forward for the Crypto Bill

The Agriculture Committee is expected to debate and vote on the bill next Tuesday. While there is some disagreement over provisions in the bill, such as the role of the CFTC and other regulatory details, the amendments filed indicate that lawmakers are eager to address concerns and ensure the legislation can effectively regulate the crypto market.

Ultimately, the success of the crypto bill hinges on balancing the interests of both parties and ensuring the regulations are robust enough to foster market growth while preventing misuse by public officials. As the committee prepares for its markup session, the debate is expected to intensify over key issues in the coming weeks.

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