Sen. Kirsten Gillibrand Optimistic Senate Agriculture Committee Will Advance Crypto Bill Despite Partisan Divide

TLDR:

• Senate Agriculture Committee scheduled Jan. 27 markup despite lacking bipartisan agreement on bill. 
• Coinbase CEO criticized Banking Committee draft, claiming it would be worse than current regulations. 
• Dual regulatory approach needed as digital assets have both commodity and security characteristics. 
• Sen. Lummis retirement creates leadership gap but Gillibrand remains committed to crypto advocacy. 

Sen. Kirsten Gillibrand said she is “very optimistic” the Senate Agriculture Committee will advance cryptocurrency legislation despite ongoing partisan divisions. 

The New York Democrat shared her views in an exclusive CNBC interview, emphasizing continued bipartisan efforts. 

The Senate Agriculture Committee has scheduled a markup session for January 27 to review legislation regulating digital commodities. 

Meanwhile, the Senate Banking Committee postponed its own crypto bill markup after facing opposition from major industry players, including Coinbase.

Dual-Track Approach to Cryptocurrency Regulation

The legislative strategy involves two separate bills addressing different aspects of digital asset regulation. “Senators have been working on a bipartisan basis for the last six months pretty intensely, and we have two different bills,” Gillibrand told CNBC. 

The Agriculture Committee oversees the Commodity Futures Trading Commission, while the Banking Committee handles Securities and Exchange Commission matters. 

She explained that digital assets possess characteristics of both commodities and securities, requiring dual regulatory oversight.

The Agriculture Committee released updated legislative text Wednesday night, building on a previous bipartisan discussion draft. Chairman John Boozman acknowledged that “differences remain on fundamental policy issues” in a statement. 

However, the Arkansas Republican emphasized that the bill incorporates stakeholder feedback and represents months of collaborative work. Boozman added that “it’s time we move this bill” despite the lack of agreement.

Gillibrand, though not an Agriculture Committee member, has actively participated in negotiations on crypto market structure. “I think both senators on the Banking and Ag committee are working in a bipartisan way and in good faith,” she said. 

The senator expressed hope that lawmakers will amend the current draft to strengthen its provisions. 

She specifically mentioned that earlier bipartisan compromises were omitted from the latest version and should be reconsidered.

The scheduled markup hearing represents a critical step toward establishing comprehensive crypto regulations. 

Gillibrand noted that the Senate Agriculture Committee’s draft is still in review. She expressed hope that “the senators will work on a bipartisan basis to amend that draft to make it stronger.” 

The senator acknowledged areas still requiring bipartisan resolution but maintained an optimistic outlook.

Banking Committee Faces Industry Pushback

The Senate Banking Committee encountered significant resistance from cryptocurrency companies regarding its draft legislation. Coinbase CEO Brian Armstrong publicly criticized the Banking Committee’s proposal during the World Economic Forum in Davos. 

Armstrong stated that his company’s legal team started to notice “some pretty serious issues in the draft text.” He claimed the legislation would create worse conditions than the current regulatory environment.

Armstrong outlined specific concerns in a post on X, writing that the bill “would be materially worse than the current status quo.” 

He particularly criticized draft amendments that would kill rewards on stablecoins, allowing banks to ban their competition. 

The draft would prohibit stablecoin issuers from offering direct holding rewards, requiring instead transaction-based or program-based incentives. 

Armstrong said Coinbase felt like they “had an obligation to go out and defend our customers’ rights.”

Chairman Tim Scott confirmed that bipartisan negotiations continue despite the postponement. The South Carolina Republican stated that “everyone remains at the table working in good faith” in his discussions with industry leaders. 

However, no new date has been set for the Banking Committee’s markup hearing. The delay reflects the complexity of balancing traditional banking interests with cryptocurrency innovation.

Gillibrand addressed concerns about potential loopholes in the GENIUS Act, which President Trump signed in July. 

She said she is “optimistic that we can find some common-sense bipartisan language that satisfies everyone’s concerns on this issue.” 

The senator emphasized the importance of distinguishing stablecoins from FDIC-insured bank deposits to protect consumers. 

She added that “we wanted to make sure that no consumer was confused about what a stablecoin is versus what a dollar sitting in a bank account is.”

Continued Commitment Despite Leadership Changes

Sen. Cynthia Lummis announced her retirement in December, creating uncertainty about future crypto advocacy. 

The Wyoming Republican partnered with Gillibrand on the Lummis-Gillibrand Responsible Financial Innovation Act in 2022. Lummis chaired the Banking Committee’s crypto subcommittee and helped guide the GENIUS Act through Congress. 

Gillibrand described Lummis’ expected retirement as “a huge loss to the U.S. Senate and a personal loss to me.”

Despite this setback, Gillibrand affirmed her unwavering commitment to digital asset regulation. She views cryptocurrency as essential for maintaining American competitiveness in global innovation. 

“I don’t want China or Asia or other parts of the world to have the benefit of these industries,” she said. The senator warned that American reluctance or inability to regulate would hand advantages to foreign competitors.

Gillibrand argued that proper regulation enables domestic companies to compete effectively while protecting consumers and traditional financial institutions. 

“If we want to protect consumers and we want to protect the traditional financial services, the best way to do that is to regulate it,” she explained. 

She maintained that regulation represents the one thing that actually makes worldwide competition possible. Her advocacy stems from believing crypto provides opportunities for entrepreneurship and innovation.

Gillibrand stressed that comprehensive regulatory frameworks remain achievable through continued bipartisan cooperation. 

She called on lawmakers to remain engaged in negotiations regardless of political pressures. The senator emphasized that people want to get crypto legislation done now. 

Her message stressed that establishing clear rules benefits all stakeholders in the digital asset ecosystem.

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