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Republican Representative Dusty Johnson from South Dakota is expected to lead the Digital Assets and Rural Development Subcommittee. This committee is a subgroup of the Agriculture Committee and focuses on legislation concerning digital commodity exchanges. Three sources indicated that Johnson is likely to support CFTC oversight in the crypto market structure legislation.
Committee Leadership and Johnson’s Role
Johnson is popular among other Republican legislators due to his traditional Republican values, fundraising ability, and pragmatism. However, his expectations for advancing in the broader Republican party leadership have not materialized amid ongoing leadership discussions. Johnson, who served as the subcommittee chair last term, is anticipated to take on the same role this term as well. According to sources, committee leadership roles will be officially established in December.
This development signals positive news for the crypto sector. Johnson is one of the architects of this year’s Financial Innovation and 21st Century Technology (FIT21) Act, advocating for CFTC oversight of crypto regulation within the bill. The legislation has made progress in the House with mutual support but has stalled in the Senate. Fortunately, the Senate is now under Republican control.
Next Steps and Expectations
The bill has been jointly prepared by the House Agriculture Committee and the Financial Services Committee, with Johnson presenting the proposal alongside Pennsylvania Republican Glenn Thompson and Arkansas Republican French Hill. Sources predict that the bill will be revisited by these two House committees in 2025 before being reviewed by the Senate Banking and Agriculture Committees.
Sources indicate that Johnson will prioritize CFTC oversight in the new market structure legislation and that Republicans are likely to grant the CFTC more oversight authority than the SEC after taking control. This approach aligns with Republicans’ advocacy for regulating cryptocurrencies as commodities while Democrats lean towards stricter regulations.
These developments indicate that the regulatory and legislative processes surrounding crypto markets are at a significant turning point. New laws shaped under CFTC oversight could critically influence how crypto exchanges manage their operations. Stakeholders in the industry will closely monitor these developments and adapt their strategies accordingly.
