Ag Policy Blog

Article was updated at 4:20 p.m.

The chairwoman of the Senate Agriculture Committee has built her tenure around garnering strong bipartisan support before bringing bills to a committee vote.

That strategy seems to be failing Sen. Debbie Stabenow, D-Mich., this summer on a couple of fronts. Stabenow can't get her committee to come together around a farm bill or legislation on cryptocurrency.

The cryptocurrency debate has split Senate Democrats between the Banking Committee, which oversees the Securities and Exchange Commission (SEC) -- and the Agriculture Committee, which oversees the Commodity Futures Trading Commission (CFTC). Leaders in both committees believe their committee and regulator should take the lead.

Stabenow was expected to bring a cryptocurrency bill to her committee for a vote this week, but Democrats on the Banking Committee, notably Sen. Elizabeth Warren, D-Mass., complained last week that Stabenow's bill doesn't go far enough. "Advancing a crypto bill that doesn't deal directly with the problems of money laundering … makes no sense at all," Politico quoted Warren last week.

Politico added that Stabenow also is having problems getting Republicans on the Agriculture Committee to back her bill.

Stabenow on Monday confirmed the challenges she faces, issued a statement on the status of her cryptocurrency legislation, saying she isn't getting backing for her effort.

"I am very proud of the bill we've drafted to bring clear rules of the road to the crypto market. It is a balanced bill that prioritizes necessary customer protections, and the industry agrees would not stifle innovation. I have worked closely with Senator Brown and the Banking Committee on this effort. There is still time to pass a bill this year, but I need a Republican senator to step up in order to accomplish that goal. I sincerely hope that politics does not get in the way of good policy."

Late Monday afternoon, Sen. John Boozman, R-Ark., the ranking member of the Senate Agriculture Committee, stated he has "worked in good faith" with Stabenow, but he has "outstanding concerns" over the crypto bill. Boozman also reverted back to similar comments he has made about the farm bill. It shouldn't be rushed.

"Digital commodities and the regulatory issues they raise are complex. Standing up a market regulatory regime for the first time ever requires due diligence and outreach necessary to consider all unintended consequences and warrants a process that gives members adequate time to deliberate the legislation they are being asked to approve," Boozman stated. "We have time to get this right. I remain committed to a bill that we can all proudly support. One that protects consumers in the digital commodities space, fosters innovation and provides the regulatory certainty businesses need to maintain their operations in the United States."

While this Senate turf war continues, Rostin Behnam, chairman of the CFTC, warned senators in a hearing earlier this month that the expansion of digital currency has led to more cases of fraud against "both novice and sophisticated investors" and added, "while everyday Americans fall victim to one digital asset scam after another, there remains no completed legislative response."

The Federal Trade Commission (FTC) reported consumers in 2023 were "losing more money to bank transfers and cryptocurrency than all other methods combined." Crypto frauds amounted to roughly $4 billion last year, up more than 50% from 2022.

Countering the efforts to regulate, former President Donald Trump spoke over the weekend to the Bitcoin Conference in Nashville. According to the crypto website "Coin Desk," Trump called for greater mining and expansion of cryptocurrency. Trump also said Democrats would put crypto out of business. "If they win this election, every one of you will be gone." Trump called for firing Gary Gensler, the chairman of the SEC, which drew applause from the crowd, Coin Desk reported.

The focus on trying to advance a cryptocurrency bill also has taxed the ability of the Senate Agriculture Committee to consider a farm bill before senators go on their August recess. The House of Representatives closed out last week without bringing its farm bill to the floor for a vote.

While the House is out, the House Ag GOP has been active on social platform X, including posting a Politico brief noting Democrats are frustrated over the lack of movement on a farm bill as well. "Now, even some House Democrats are urging Stabenow to release more details with the talks locked in an impasse," Politico stated. Rep. Darren Soto, D-Fla., said "I would urge Sen. Stabenow to put out bill text as well," in a brief interview with Politico.

Meanwhile, economists at the American Farm Bureau Federation wrote late last week, "Five Things We'll Miss Without a New Farm Bill."

https://www.fb.org/…

That reads something like a similar column that came out a week earlier, "What's Lost by Extending the Farm Bill." https://www.dtnpf.com/…

Chris Clayton can be reached at Chris.Clayton@dtn.com

Follow him on social platform X @ChrisClaytonDTN

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