Senator Kirsten Gillibrand (D-N.Y.) expressed strong optimism regarding the Senate Agriculture Committee’s recent bill aimed at regulating cryptocurrencies, despite ongoing disagreements between Republicans and Democrats. “Senators have been collaborating quite intensively over the past six months on a bipartisan basis. We currently have two distinct bills,” she mentioned during an interview with CNBC.

One of these bills is with the Agriculture Committee, which monitors the Commodity Futures Trading Commission, while the other is handled by the Banking Committee, overseeing the Securities and Exchange Commission as well as banking-related matters. “Digital assets possess features of both commodities and securities, so they necessitate oversight from both commissions,” Gillibrand explained.

Even though the Democratic senator is not part of the Senate Agriculture Committee, she has been actively engaged in talks regarding the cryptocurrency market’s framework. She elaborated that they are simultaneously developing two bills focusing on different aspects of the cryptocurrency market regulation.

“I believe that the senators involved in both committees are working genuinely and collaboratively,” she stated.

Recently, the Senate Agriculture Committee released updated legal language, rooted in a prior bipartisan discussion draft, which would empower the CFTC to regulate digital assets. Chairman John Boozman (R-Ark.) acknowledged remaining “fundamental policy disagreements,” yet indicated that the bill is a product of bipartisan collaboration with stakeholder feedback, requiring more time to finalize.

“We’re disappointed that a consensus hasn’t been reached, but we appreciate the teamwork that has improved this bill,” Boozman said, insisting, “Now is the time to advance this legislation.”

The Agriculture Committee’s bill concerning digital assets is expected to face price changes in the upcoming weeks. On the other hand, the Senate Banking Committee had initially scheduled a markup hearing related to digital asset regulations but canceled it last minute amid opposition from crypto firms, including Coinbase.

When asked whether she anticipated delays for the Senate Agriculture Committee, Gillibrand mentioned that some bipartisan resolutions are still required, although she believes price increases are likely to materialize soon.

She remarked that the committee’s draft is still being reviewed and expressed hope for senators to collaborate openly on making improvements and addressing unresolved areas.

Gillibrand noted that prior drafts included several bipartisan compromises, some of which were later removed. “My hope is that senators will reconsider and reintroduce some of the strong compromises we had,” she added.

According to R.S.C. Chairman Tim Scott, bipartisan discussions are still in progress regarding the Senate Banking Committee’s draft cryptocurrency market structure bill. “I’ve been in dialogue with crypto industry leaders, financial sector stakeholders, and my colleagues across the aisle. We are all making good-faith efforts at the table,” Scott stated.

There is currently no new date set for the Senate Banking Committee’s hearing regarding the virtual currency market structure bill. Gillibrand mentioned that there’s ongoing work needed in the coming weeks, indicating a desire for resolution.

During a CNBC appearance at the World Economic Forum in Davos, Switzerland, Brian Armstrong, the CEO of Coinbase, stressed the urgency for legislative clarity on crypto. He indicated that the company’s legal team had identified serious issues within the draft proposing to regulate the banking sector and the crypto industry, without any visible plans to resolve them. “We feel it’s our duty to stand up for our customers’ interests and highlight these concerns,” Armstrong remarked.

In a recent post on X, Armstrong claimed that the Senate Banking Committee’s bill would significantly worsen the status quo. He outlined several concerns, including an amendment that would end stablecoin rewards, along with provisions allowing banks to inhibit competition.

The bill reportedly would restrict stablecoin issuers from providing rewards to those who hold stablecoins directly, necessitating that such rewards come from completing transactions or participation in reward programs instead. Banks are advocating for Congress to clarify certain provisions of the GENIUS stablecoin bill, citing fears of potential deposit outflows from the insured banking system—a claim that’s faced skepticism from several crypto firms, including Coinbase.

Gillibrand was a leading Democratic sponsor of the GENIUS Act, which established a regulatory framework for cryptocurrencies, subsequently signed into law by President Trump last July. Responding to claims of loopholes in the legislation, she conveyed optimism in finding bipartisan solutions that address everyone’s concerns. “While we thought we had reached a conclusion with the GENIUS Act, if further amendments are necessary, we’re ready to engage,” she stated. “We’ve expressed clearly that while rewards, points, and related programs are acceptable, offering interest on stablecoins is not something we can permit.”

She reassured that lawmakers want to extend an opportunity for the crypto industry to adhere to regulatory guidelines, ensuring consumers understand what stablecoins are, clearly differentiating them from insured bank deposits while maintaining various protective measures.

Since 2022, Gillibrand has been advocating for crypto regulation in collaboration with Sen. Cynthia Lummis (R-Wyo.), with both introducing the Lummis-Gillibrand Responsible Financial Innovation Act, a bipartisan regulatory framework for cryptocurrencies. Recently, Lummis announced plans to retire at the end of her term this year. She chairs the Senate Banking Committee’s Virtual Currency Subcommittee, which played a crucial role in passing the GENIUS Act.

Gillibrand remarked on Lummis’ expected retirement, saying, “This is a significant loss for the U.S. Senate, and personally, a loss for me.”

Despite Lummis’ retirement, Gillibrand reaffirmed her commitment to digital assets. She emphasized their potential for fostering entrepreneurship and innovation. “We must ensure that regions like China or other parts of the world don’t capitalize on these opportunities while we hesitate or fail to regulate,” she stressed.

Gillibrand believes that careful regulation is essential for consumer protection and supporting traditional financial services. “The most effective approach to ensure competition globally is through regulation. That remains our goal,” she concluded, urging for ongoing bipartisan discussions to establish a comprehensive framework for digital assets.