Senate Agriculture Panel Advances Digital Asset Market Structure Bill

The Senate Agriculture Committee has advanced its version of digital asset market structure legislation, as negotiations continue on another panel for their piece of the contentious bill.

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The Senate Agriculture Committee took a significant step forward in regulating the digital asset market with the advancement of its version of the digital asset market structure bill on a party-line vote. This comes as key lawmakers on the Senate Banking, Housing, and Urban Affairs Committee continue to negotiate their piece of the legislation.

The committee's bill, known as the "Digital Commodity Exchange Act of 2021," aims to establish a regulatory framework for digital commodity exchanges. According to the text of the bill, it would provide the Commodity Futures Trading Commission (CFTC) with the authority to register and regulate these digital asset exchanges. The bill also includes provisions for customer protection, market transparency, and anti-manipulation measures.

Meanwhile, on the Senate Banking, Housing, and Urban Affairs Committee, bipartisan negotiations have been ongoing for a separate digital asset bill. This bill, called the "Responsible Financial Innovation Act," would provide a regulatory framework for the entire digital asset ecosystem, including stablecoins, decentralized finance (DeFi), and digital asset service providers.

The two committees' bills have some differences, including the regulatory bodies that would oversee the digital asset industry. The Agriculture Committee's bill would primarily give regulatory authority to the CFTC, while the Banking Committee's bill would create a new agency, the Digital Asset Market Structure Authority.

Despite these differences, there's been bipartisan support for the need to regulate the digital asset industry. In a statement after the vote, Senate Agriculture Committee Chair Debbie Stabenow (D-MI) said, "Digital commodities and digital assets have the potential to bring significant benefits to American families, farmers, and businesses. But we need to ensure that consumers are protected, markets are transparent, and bad actors are held accountable."

The next steps for both bills include markups in their respective committees and floor consideration in the Senate. It remains to be seen whether the two bills will be merged or if they will move forward separately.

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