Crypto Regulations Bill Timing Slips on Delays During Shutdown

Panel consideration in the Senate of legislation establishing a regulatory framework for digital assets will likely have to wait until at least next month, despite progress from key negotiators this week.

Senators on the Banking and Agriculture Committees have been attempting to coalesce around market-structure legislation that would set the rules of the road for cryptocurrencies, after the House passed its own version in July (H.R. 3633).

Progress emerged Monday when Senate Agriculture Committee Chair John Boozman (R-Ark.), whose panel has jurisdiction over digital assets treated as commodities, released a long-awaited discussion draft with committee member Sen. Cory Booker (D-N.J.) that extends new oversight authorities to the Commodity Futures Trading Commission.

But Boozman’s previous goal of marking up his committee’s work by next week may slip past Thanksgiving to give lawmakers and industry a chance to understand the proposed changes.

“We’re committed to doing it early December,” Boozman told Bloomberg Tax on Monday. “We lost a little bit of ground with the shutdown.”

Crypto industry advocates praised the discussion draft as a step toward establishing clearer regulations and downshifting the role of the larger Securities and Exchange Commission, whose enforcement has plummeted since President Donald Trump retook office.

“Continued collaboration between the Senate Agriculture and Banking Committees will be essential to delivering a comprehensive framework that secures America’s place as the global leader in crypto and digital assets,” said Summer Mersinger, a former CFTC commissioner and aide to Senate Majority Leader John Thune (R-S.D.) who now serves as CEO of the Blockchain Association.

Republicans on the Senate Banking Committee released their own portion of the legislation in September but have yet to take up the bill for a vote.

“I hope it spurs us on,” said Sen. Cynthia Lummis (R-Wyo.), a member of the Banking Committee. “We’re getting close, too.”

Tax code changes directed at digital assets are also in the offing. Sen. Steve Daines (R-Mont.), a member of the tax writing Finance Committee, said he’s also hoping to complete this stage of his negotiations with lawmakers and outside stakeholders in the next few weeks.

“I’d like to get something going here, you know, around the first of the year,” Daines said Monday.