U.S. Senator Tommy Tuberville (R-AL) participated in a Senate Agriculture, Nutrition, and Forestry Committee hearing focused on federal oversight of digital commodities. The discussion involved several industry and regulatory leaders, including Ji Kim, CEO of the Crypto Council for Innovation; Rostin Behnam, Distinguished Fellow at Georgetown University; and Tom Sexton, President and CEO of the National Futures Association.
During the hearing, Tuberville raised concerns about the United States potentially falling behind other regions in blockchain-based innovation. He referenced recent conversations with cryptocurrency exchanges expressing anxiety over possible relocation outside the country due to regulatory uncertainty.
“Mr. Kim, you touched on this very briefly in your opening statement. The E.U. and U.K. are moving quickly to attract blockchain-based innovation. What risk are we at in the United States? What are we gonna face if we don’t get more urgent about what’s going on?
I recently talked to some exchanges and they’re freaking out basically about, ‘Hey, we’ve gotta do something or we’re gonna move out of the country.’ What [are] your thoughts?” Tuberville asked.
Ji Kim responded by highlighting global competition for leadership in digital assets: “Thank you very much for your question, Senator. As I mentioned in my testimony, it is a global race to the top. So other jurisdictions have not been waiting for the U.S. to lead. You have the E.U., Singapore, Japan, U.K. [are] all looking into technology resources. I see block chain development and digital assets as the plumbing and infrastructure for the second half of the 21st Century. We need the U.S. to lead.
That said, despite the progress in other jurisdictions, everyone is watching the U.S. now. They’re seeing the Senate having passed [the] GENIUS [Act], they’re seeing development on the market structure bill, including in this Committee. And even the U.K. is actually a really good example, Senator, where they had been taking a very modular, patient approach, but recently they announced an all-at-once approach. And I believe that there’s an opportunity for the U.S. to cement this leadership and make sure this innovation stays here in the U.S.—and that starts with a comprehensive incentive framework as I discussed, Senator.”
Tuberville then invited Tom Sexton to comment further on legislative efforts regarding digital commodities regulation.
Sexton replied: “Senator, I encourage this Committee and the House to continue to work on legislation in this area. I think it’s very important. I can tell you that from our perspective, we have—as I indicated—member firms are already engaged in this activity. And to the extent that the CFTC would be provided with not only anti-fraud but also regulatory oversight over digital commodities,I think it’d be very helpful as far as our own regulatory structure here.”
The hearing also addressed overlapping jurisdiction between federal regulators such as CFTC and SEC regarding digital assets.
Tuberville asked Rostin Behnam about clarifying these regulatory definitions: “Mr. Behnam,the U.S.model of having two regulators—and we touched on this briefly—only works if there are clear jurisdictions.You’re very familiar with that.Can you talk aboutthe needto clear up,you know,this regulatory definition between CFTC andthe SEC?”
Behnam emphasized defining agency roles: “Senator thanks for question.It’s first and most important step because from that point,the two agencies will be ableto really startto develop rules either distinctly and uniquely or ina joint fashion.But this is certainly anew assetthathas alotof characteristics thataresimilar toothersbutalsohave alotof characteristicsthatare noveland new andaregonnarequireadifferentwayof thinkingaboutit.So,I do thinkit’s criticallyimportant.Ialsothink putting myselfinmyoldshoes,it isimportantthatthe agenciesgetabitofa steerfromthisCommitteeinCongressbecausetherearelinesthatIthinkthiscommitteeandthe Congresscandrawtohelpthe agenciesstarttoreallydefinethe landscapeofwhattokensare securitiesandwhattokensarecommodities.”
Tuberville concluded his remarks by yielding back his time during questioning.
Senator Tuberville serves Alabama in multiple Senate committees including Armed Services,Agriculture,Veterans’ Affairs,and others.
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