Brown Backs Away from Crypto Legislation, Presses Again for New Rules

Senate Banking Committee Chairman Brown (D-OH) today backed away from prior statements about crypto legislation, focusing instead on the prospect of additional investigations into failing crypto firms and ongoing work with Secretary Yellen on a government-wide regulatory framework. Today’s hearing still centered on legislative action, with Sen. Warren (D-MA) along with Sen. Marshall (R-KS) releasing new legislation to subject crypto firms to AML rules comparable to those applied to banks along with banning crypto mixers. Sen. Lummis (R-WY) announced that she will reintroduce her stablecoin bill next year with Sen. Gillibrand (D-NY) (see FSM Report CRYPTO28), revising it in light of recent crypto debacles. Sen. Haggerty (R-TN) flagged Binance’s newfound monopoly power and ties to China as a major concern, an issue echoed by Sen. Warner (D-VA) and, in conjunction with Chairman Brown’s investigative agenda, may well subject the world’s largest crypto exchange to U.S. legislative scrutiny if its current liquidity challenges do not preoccupy attention next year.