Historic digital assets regulation bill approved by US Senate committee for the first time
Republicans approved the Digital Commodity Intermediaries Act granting CFTC authority over digital assets, whilst Democrats opposed citing ethics concerns.
The US Senate Agriculture Committee has voted along party lines to advance legislation on the cryptocurrency market structure, marking the first time such a bill has cleared a Senate committee.
The Digital Commodity Intermediaries Act passed with 12 Republicans voting in favour and 11 Democrats opposing, representing a significant development for digital asset regulation in the United States.
The legislation would grant the Commodity Futures Trading Commission new regulatory authority over digital commodities and establish consumer protections, including safeguards against conflicts of interest.
Chairman John Boozman proceeded with the bill after losing bipartisan support when Senator Cory Booker withdrew backing for the version presented. The Senate Banking Committee must approve the measure before the two versions can be combined and advanced to the Senate floor.
Democrats raised concerns about the legislation, particularly regarding President Donald Trump’s cryptocurrency ventures. Senator Booker stated the bill departed from bipartisan principles established in November, noting Republicans ‘walked away’ from previous agreements.
Democrats offered amendments to ban public officials from engaging in the crypto industry and to address foreign-adversary involvement in digital commodities. Still, all were rejected as outside the committee’s jurisdiction.
Senator Gillibrand expressed optimism about the bill’s advancement, whilst Boozman called the vote ‘a critical step towards creating clear rules’. The Senate Banking Committee’s consideration was postponed following opposition from the crypto industry, with no new hearing date set.
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