Senate Ag Crypto Bill Faces Uphill Climb Despite CFTC Efforts

In the first Congressional review of crypto since the collapse of FTX, Senate Agriculture leadership largely defended the bill they produced, S.4760. However, members outside of leadership were more skeptical of CFTC regulation and more broadly of the need for crypto in any part of the financial market. Senate Banking Chairman Brown (D-OH) reiterated that he is working with Secretary Yellen to create a crypto framework that protects the traditional financial system and consumers. Sen. Gillibrand (D-NY) seems to have moved away from her unequivocal support of cryptoassets, asking numerous questions on regulatory arbitrage and foreign domiciles, while Sen. Marshall (R-KS) joined Sen. Brown in suggesting that cryptoassets pose national-security risks. Ag Committee Chair Stabenow (D-MI) countered that the bill would have prevented FTX’s failure, a view Ranking Member Boozman (R-AR) largely supported even as he said additional work may be needed on matters such as inter-affiliate transaction restraints.