According to a New York Times article, SEC Chair Gary Gensler is pushing back on calls for new laws to oversee digital assets, arguing that existing SEC rules and Supreme Court decisions are sufficient to regulate the industry. He also said in an interview on December 22 that he would support legislation to regulate certain sectors, like stablecoins, but thinks that some other bills could undermine his agency’s existing authority.

Senate Banking Committee Chair Sherrod Brown (D-OH) introduced a bill on December 6 targeting fintech-backed companies that offer bank services without Federal Reserve supervision. Cosponsors include Sens. Bob Casey (D-PA) and Chris Van Hollen (D-MD). The bill would require state-chartered firms called industrial loan companies to be subjected to the same level of Federal Reserve oversight as other banking institutions.

Sens. Elizabeth Warren (D-MA), Roger Marshall (R-KS), and John Kennedy (R-LA) sent a letter on December 5 criticizing San Diego-based crypto bank Silvergate for its role in potentially transferring funds between FTX and his hedge fund, Alameda Research, as part of FTX’s alleged use of customer funds to plug holes in Alameda’s balance sheet during this year’s crypto market crash. The letter says, “Your bank’s involvement in the transfer of FTX customer funds to Alameda reveals what appears to be an egregious failure of your bank’s responsibility to monitor for and report suspicious financial activity carried out by its clients.”

Sens. Elizabeth Warren (D-MA) and Roger Marshall (R-KS) introduced a bill on December 14 to force cryptocurrency businesses and developers to comply with anti-money laundering and anti-terrorist financing rules. Warren said, “The crypto industry should follow common-sense rules like banks, brokers, and Western Union, and this legislation would ensure the same standards apply across similar financial transactions. The bipartisan bill will help close crypto money laundering loopholes and strengthen enforcement to better safeguard U.S. national security.” Specifically, the bill would direct FinCEN to designate wallet providers, miners, validators, and other crypto-related entities as money services businesses, which would require them to comply with the Bank Secrecy Act’s KYC rules.

On December 7 Sens. Elizabeth Warren (D-MA) and Tina Smith (D-MN) sent letters to the heads of the Federal Reserve, FDIC, and OCC urging them to investigate U.S. financial institutions’ ties to the crypto industry. Their letters say, “While the banking system has so far [been] relatively unscathed by the latest crypto crash, FTX’s collapse shows that crypto may be more integrated into the banking system than regulators are aware…FTX’s collapse revealed close ties between banks and shady crypto firms…Banking regulators need to make sure that the highly volatile and risky crypto market won’t jeopardize the banking system and potentially harm millions of Americans.”

Rep. Tom Emmer (R-MN) tweeted on December 9 calling for SEC Chair Gary Gensler to testify before Congress “and answer questions about the cost of his regulatory failures.” He stated earlier in the thread that his “crypto information-gathering efforts were ineffective” and he “has repeatedly dodged Congress at the expense of investors…leaving us to learn about the SEC’s crypto investigations, like the one into FTX, through the media.”

Retiring Senate Banking Committee Ranking Member Pat Toomey (R-PA) introduced legislation on December 21 that “would establish the first federal regulatory framework for payment stablecoins and guide Congress towards a path for sensible regulation of cryptocurrencies.” He said, “I hope this framework lays the groundwork for my colleagues to pass legislation next year safeguarding customer funds without inhibiting innovation. I’ve put forward a regulatory model that won’t undermine competition by favoring entrenched incumbents—for example, by limiting payment stablecoin issuance to insured depository institutions. This bill will also ensure the Federal Reserve, which has displayed significant skepticism about stablecoins, won’t be in a position to stop this activity.”

New York Department of Financial Services Superintendent Adrienne Harris is calling for public comment on a proposed regulation to allow the agency to collect fees from cryptocurrency companies licensed to operate in the state in order to cover the cost of oversight. The fees would be similar to those paid by banking and insurance entities. Harris said, “This assessment authority will allow the Department to continue building the team that is leading the nation with a suite of regulatory tools. The ability to collect supervisory costs will help the Department continue protecting consumers and ensuring the safety and soundness of this industry.”

Bank of America released a research report on December 2 stating that cryptocurrency must be regulated if it is to become mainstream. It explains, “An increased urgency for regulation may enable greater institutional engagement, and a shift in focus (and capital) from speculative trading to projects with real-world functionality and companies with roadmaps to profitability may accelerate industry maturity.” It also notes that FTX’s collapse has underscored the need for a framework that “creates a transparent legal framework for digital assets; fosters technological innovation; provides consumer and investor protections; and mitigates financial stability risks.”