The US Senate Agriculture Committee is set to vote next week on a comprehensive crypto market structure bill, as lawmakers introduce amendments aimed at addressing ethical conflicts and regulatory preparedness. This development comes just days before a scheduled markup, highlighting ongoing disagreements that could significantly influence the bill’s future trajectory.
Ethics Amendment Addresses Conflicts of Interest
Ahead of the vote on March 12, 2024, committee members have submitted various amendments, including one from Michael Bennet proposing the addition of the Digital Asset Ethics Act. This amendment seeks to restrict “covered individuals,” such as the president, vice president, and members of Congress, from engaging in specific digital asset transactions. The intent is to minimize financial activities that could raise ethical concerns while lawmakers develop the regulatory framework for cryptocurrencies.
This proposal reflects the Democratic Party’s apprehensions regarding Donald Trump’s personal and familial involvement in crypto ventures. According to estimates from Bloomberg, Trump has reportedly earned around $1.4 billion from various crypto-related businesses, including a decentralized finance (DeFi) and stablecoin project called World Liberty Financial. Additionally, the Trump family is said to hold a 20% stake in the mining firm American Bitcoin. The political implications of these interests have intensified calls for stronger ethical regulations as Congress moves to establish new market standards.
Concerns Over Regulatory Capacity and Consumer Protection
In addition to ethical considerations, lawmakers have proposed amendments that focus on enforcement capabilities and consumer protection measures. One such amendment aims to address deceptive or misleading transactions occurring at digital asset kiosks, which legislators perceive as an increasing risk. This initiative is designed to enhance transparency and reduce fraud within retail crypto services.
Another significant proposal, introduced by Amy Klobuchar, emphasizes regulatory readiness. Her amendment would postpone the bill’s implementation until the Commodity Futures Trading Commission (CFTC) has a full complement of at least four commissioners. Currently, the agency operates with only one commissioner, Chair Michael Selig, while federal law permits a maximum of five commissioners, with no more than three from a single political party. Lawmakers argue that a single-commissioner agency lacks the necessary resources to enforce extensive new regulations effectively.
The Senate Agriculture Committee recently released the bill’s text under the leadership of John Boozman, who acknowledged persistent differences on crucial policy matters despite several weeks of bipartisan discussions. He indicated that collaboration has improved the bill, even in the absence of complete consensus.
For the legislation to progress beyond the committee stage, it must secure at least 60 votes in the full Senate. Achieving this threshold necessitates bipartisan support across various contentious issues, including oversight authority, stablecoin regulations, and ethical safeguards. As the markup date approaches, negotiations between lawmakers from both parties continue.
Industry observers consider this bill one of Congress’s most significant efforts to define the framework for the crypto market. The outcome of next week’s vote is likely to determine whether the legislation moves forward or undergoes further revisions prior to wider Senate consideration. The evolving dynamics of this process underscore the complexities of establishing regulatory clarity in the rapidly changing world of digital assets.
