Republican Rep. Dusty Johnson of South Dakota is expected to lead the Subcommittee on Digital Assets and Rural Development. This committee is a subgroup of the Agriculture Committee and is working on bills on digital commodity exchanges. Three sources said they expect Johnson to support CFTC oversight of the crypto market structure bill.
Committee Leadership and Johnson’s Role
Johnson is popular with other Republican legislators for his traditional Republican values, fundraising ability and pragmatism. However, his expectation of rising higher in the overall Republican party leadership did not materialize as the party’s leadership debates continued. Johnson, who was the subcommittee chairman last term, is expected to assume the same duty this term. Committee leadership roles will be formally determined in December, sources said.
This development is positive news for the crypto industry. Johnson is one of the architects of this year’s Financial Innovation and 21st Century Technology (FIT21) Act, advocating for the CFTC’s crypto oversight in the bill structure. The law advanced in the Parliament with mutual support, but was blocked in the Senate. Fortunately, the Senate is now also under Republican control.
Future Steps and Prospects
The legislation was co-authored by the House Agriculture Committee and the Financial Services Committee, and Johnson introduced the bill along with Pennsylvania Republican Glenn Thompson and Arkansas Republican French Hill. Sources predict the bill will be revisited in those two House committees in 2025 and then be reviewed by the Senate Banking and Agriculture committees.
Sources stated that Johnson would prioritize CFTC supervision in the new market structure law, while Republicans tended to give the CFTC more supervisory authority than the SEC after taking power. This approach is in line with Republicans advocating regulating cryptocurrencies as commodities and Democrats pushing for stricter regulations.
These developments show that crypto markets are at an important turning point in supervision and regulation processes. New laws to be shaped under the supervision of the CFTC may play a critical role in determining how cryptocurrency exchanges will manage their activities. Stakeholders in the sector will follow these processes closely and adapt their strategies according to these changes when necessary.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
