Sen. Kirsten Gillibrand ‘Very Optimistic’ as Senate Agriculture Pushes Crypto Bill Forward Despite Hurdles

Exciting Progress in US

The world of cryptocurrencies is getting closer to clear rules in the United States. Sen. , a key Democrat from New York, says she is “very optimistic” that the Committee’s will move ahead. Even with some big differences between Republicans and Democrats, bipartisan talks are heating up.

Why Two Committees Are Handling Crypto Rules

Cryptocurrencies are tricky. They act like both commodities and securities. That’s why two Senate groups are working on bills at the same time.

• The Senate Agriculture Committee deals with the Commodity Futures Trading Commission (CFTC). This bill would give the CFTC more power over digital assets.
• The Senate Banking Committee handles the Securities and Exchange Commission (SEC) and bank issues.

Sen. Gillibrand is not on the Agriculture Committee but has joined the talks on crypto market structure. She notes that senators from both parties have worked hard for six months.

New Draft from : What’s Inside?

The Senate Agriculture Committee just released an updated bill text. It builds on an earlier bipartisan draft and includes ideas from industry experts. The goal? Give the CFTC clear authority to oversee digital commodities.

Chairman John Boozman, a Republican from Arkansas, said differences still exist on key policies. But he praised the teamwork: “It’s time we move this bill.” A markup session is set for January 27. This is when senators will debate and vote on changes.

Gillibrand hopes they will add back some strong bipartisan compromises from earlier drafts. She believes the hearing will happen as planned, even if more talks are needed.

Delays: Coinbase Sounds the Alarm

The Senate Banking Committee’s markup was set for January 15 but got postponed. Why? Strong pushback from the crypto world, including Coinbase.

Coinbase CEO Brian Armstrong spoke out from Davos. He said the draft had “serious issues,” like rules that could hurt stablecoin rewards and let banks block competition. Armstrong posted on X that the bill would make things worse than now.

Chairman Tim Scott, a Republican from South Carolina, says talks continue with crypto leaders, banks, and both parties. No new date yet, but Gillibrand thinks work will speed up soon. “People want to get this done now,” she said.

Stablecoin Drama: GENIUS Act Under Fire

A big fight is over stablecoins. Banks say the GENIUS Act has a loophole. This law, signed by President Trump in July, bans stablecoin issuers from paying direct interest. Banks fear people will pull money from safe bank accounts.

The Banking draft would stop rewards just for holding stablecoins. Rewards could only come from transactions or programs. Crypto firms like Coinbase disagree. They say it’s not a loophole.

Gillibrand led the GENIUS Act as top Democrat. She thinks they can find bipartisan words to fix concerns. “We allowed rewards and points, but not interest-like products,” she explained. Lawmakers want to protect bank deposits and avoid confusion. Stablecoins aren’t FDIC insured like bank dollars, but they must be backed 1:1 by US dollars.

Gillibrand’s Long Fight for Crypto Rules

Since 2022, Sen. Gillibrand has pushed hard for crypto laws. She teamed with Sen. Cynthia Lummis from Wyoming on the Lummis-Gillibrand Responsible Financial Innovation Act. It’s a blueprint for smart regulation.

Lummis chairs the Banking Committee’s crypto group and helped pass GENIUS. But she plans to retire end of term. Gillibrand calls it a “huge loss” but vows to keep going. “I’m committed to crypto for entrepreneurship and innovation,” she said.

She warns the US can’t let China or Asia dominate. Regulation protects consumers, banks, and lets America compete globally.

What This Means for Crypto Investors and Industry

Clear rules could end the ‘regulation by enforcement’ era. The CFTC getting more power might favor decentralized assets as commodities. SEC focus stays on security-like tokens.

For stablecoins, balanced rules prevent bank runs while allowing innovation. Coinbase and others want fair play against banks.

Investors should watch markups. Progress here could spark a bull run by reducing uncertainty. Long-term, it builds trust for mainstream adoption.

Looking Ahead: Bipartisan Path to Victory?

Sen. urges everyone to stay at the table. With intense six-month efforts, both bills show real promise. Differences remain, but good faith talks could bridge them.

The crypto market needs this. It protects users, fights scams, and unlocks growth. As Gillibrand puts it, regulation is key to global competition. Stay tuned for Jan 27 markup – it could be a game-changer for .

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