Sen. Kirsten Gillibrand Stays Optimistic on Crypto Bill Progress in Senate Agriculture Committee

Introduction: A Big Step for Crypto Regulation

Crypto is growing fast, but clear rules are needed to protect users and let the industry thrive. , a key Democrat from New York, says she is very optimistic that the Senate Agriculture Committee will move forward with its . Even with some disagreements between Republicans and Democrats, bipartisan talks are heating up.

This bill aims to give the Commodity Futures Trading Commission (CFTC) more power over digital assets that act like commodities. It’s part of a larger effort to create a solid framework for crypto in the US. Let’s break down what’s happening, why it matters, and what comes next.

The Two-Part Plan for Crypto Rules

Senators have worked hard for six months on two bills. One is in the Senate Agriculture Committee, which handles the CFTC. The other is in the Senate Banking Committee, which deals with the Securities and Exchange Commission (SEC) and banks.

Why two bills? Crypto assets often have traits of both commodities and securities. For example, Bitcoin looks like a commodity, while some tokens act like stocks. Gillibrand explained that both committees must regulate to cover all bases.

• Agriculture Committee Bill: Focuses on CFTC oversight for digital commodities.
• Banking Committee Bill: Handles SEC rules and banking issues for digital assets.

These bills are built together but tackle different sides of the crypto market structure.

Recent Updates from the Agriculture Committee

Last week, the Senate Agriculture Committee released an updated version of its bill. It builds on a bipartisan draft from before and includes feedback from industry experts.

Chairman John Boozman (R-Ark.) said differences still exist on key issues, but the bill shows months of hard work. “It’s time we move this bill,” he added.

The next step is a markup session on January 27. This is where senators will debate and vote on changes. Gillibrand, though not on the committee, has joined the talks. She hopes they will add back some strong bipartisan compromises from earlier drafts.

Challenges in the Banking Committee

The Senate Banking Committee’s markup was set for January 15 but got delayed. Crypto firms like Coinbase spoke out against parts of the draft. CEO Brian Armstrong said it had serious problems, like rules that could hurt stablecoin rewards and let banks block competition.

Chairman Tim Scott (R-S.C.) says talks continue with industry leaders, banks, and both parties. No new date is set yet, but Gillibrand believes progress will come soon. “People want to get this done now,” she said.

Stablecoin Drama and the GENIUS Act

A hot topic is stablecoins, which are cryptos pegged to the US dollar. Banks worry that stablecoin rewards could pull deposits away from FDIC-insured accounts. The Senate Banking draft would limit rewards to transactions or programs, not just holding.

This ties back to the GENIUS Act, signed into law last July by President Trump. Gillibrand led the Democratic side. It banned direct interest on stablecoins but allowed rewards and points. Stablecoins must be backed 1:1 by US dollars or equivalents, with clear consumer protections.

Gillibrand is confident they can fix any loopholes with bipartisan language. “We want crypto to follow rules without confusing people about FDIC insurance,” she noted.

Gillibrand’s Long Fight for Crypto Rules

Gillibrand has pushed crypto legislation since 2022. She teamed up with Sen. Cynthia Lummis (R-Wyo.) on the Lummis-Gillibrand Responsible Financial Innovation Act. This was an early blueprint for balanced regulation.

Both senators also helped pass the GENIUS Act. But Lummis announced her retirement at year’s end, a blow to the Senate. She chairs the Banking Committee’s crypto subcommittee. Gillibrand called it a “huge loss” but vows to keep fighting.

“I’m committed to crypto because it sparks entrepreneurship and innovation,” Gillibrand said. She warns that without US rules, countries like China could dominate.

Why Bipartisan Regulation Matters for Crypto

Clear rules would:

1. Protect consumers from scams and failures.
2. Let legit projects grow without fear of crackdowns.
3. Keep the US ahead in global crypto competition.
4. Bridge crypto and traditional finance safely.

Industry pushback shows the stakes are high. Coinbase and others want rules that don’t stifle innovation. Banks seek fairness. Lawmakers like Gillibrand see regulation as the path to balance.

What’s Next for the ?

The Agriculture markup on January 27 is a key test. If it passes, it could pressure the Banking Committee to act. Gillibrand urges everyone to stay at the table.

Expect more tweaks on stablecoins, CFTC powers, and market structure. With Davos talks highlighting crypto’s role, momentum is building.

For crypto fans and investors, this is exciting. Strong US regulation could boost confidence, attract capital, and pave the way for mainstream adoption.

Final Thoughts

‘s optimism shines through tough talks. Her push for a comprehensive framework could define crypto’s future in America. Stay tuned as these bills evolve – they might just unlock the next bull run.

Follow updates on crypto regulation, CFTC roles, and Senate moves to stay ahead.

Discuss this news on our Telegram Community. Subscribe to us on Google news and do follow us on Twitter @Blockmanity

Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.