Short Description
Severe weather has prompted delays in U.S. Senate discussions on digital asset regulation, affecting the rollout of the Digital Commodity Intermediaries Act aimed at establishing clearer guidelines for crypto markets.
Read Time
3 minutes 45 seconds
Main Article
The U.S. Senate Agriculture Committee, alongside two federal financial agencies, has postponed significant discussions regarding digital asset regulation due to a winter storm that impacted large parts of the country. The postponement includes the markup of the Digital Commodity Intermediaries Act, a key piece of legislation designed to clarify the regulatory framework for digital assets overseen by the Commodity Futures Trading Commission (CFTC). Initially scheduled for Tuesday, this markup is now set for Thursday, following heavy snowfall, power outages, and school closures across affected areas.
In conjunction with this delay, the CFTC announced a two-day postponement of a joint event focused on harmonizing oversight of digital assets with the U.S. Securities and Exchange Commission (SEC). This event aimed to facilitate coordination between CFTC Chair Michael Selig and SEC Chair Paul Atkins regarding the regulation of digital currencies. The adverse weather contributes to both agencies’ motivations to reschedule these critical discussions, reflecting the urgency of establishing robust regulatory guidelines amid a rapidly evolving crypto market landscape.
Despite neither agency explicitly stating that inclement weather was the cause for the delays, reports from Washington, D.C., indicated treacherous road conditions, which likely hampered the ability of lawmakers and officials to convene. The backup in legislative processes comes at a crucial time, with calls for transparency in the crypto market growing louder amidst allegations of conflicts of interest and foreign interference. Senator Michael Bennet has proposed amendments to address these issues, including restrictions on congressional candidates engaging with digital assets, further emphasizing the need for ethical standards in this burgeoning sector.
The Agriculture Committee’s markup represents a continuation of Senate efforts to clarify digital asset regulation following prior setbacks. Two weeks ago, the Senate Banking Committee postponed a similar markup of another crypto-focused bill due to disagreements within the committee and external pressures from industry stakeholders, notably Coinbase. As the countdown to a potential government shutdown looms, the urgency for bipartisan support for the Digital Commodity Intermediaries Act has become more pronounced. Senators recognize that broad support will be necessary for this bill to advance through Congress.
Short Summary
Delays in the U.S. Senate’s discussions on digital asset regulation, driven by severe winter weather, underscore the urgent need for clear guidelines in the evolving crypto market. With lawmakers facing potential government shutdowns, bipartisan support is crucial for advancing the Digital Commodity Intermediaries Act.
