A critical step in the legislative bill aimed at regulating the cryptocurrency market in the US has been postponed.
The Senate Banking Committee canceled a planned markup hearing today on the cryptocurrency market structure bill. This decision follows Coinbase's public withdrawal of its support for the bill yesterday.
Details of the Postponement
Committee Chairman Tim Scott announced late in the day that the bill has been postponed to a later date, with no new timeline set. Scott stated that discussions are ongoing with the cryptocurrency sector, the financial world, and senators from both parties. He added, "We aim to create a clear framework that protects consumers, strengthens national security, and ensures the future of finance is built in the United States."
While Coinbase’s last-minute objection attracted significant attention, rumors circulated that the bill had faced difficulties prior to this development. In his interview, Scott expressed optimism but acknowledged uncertainty regarding the swift resolution of disagreements in the ongoing negotiations.
Key Points of Contention
Stablecoin Yield Programs and Banking Opposition
One of the most controversial aspects of the bill involved allowing stablecoin yield programs. This feature faced intense lobbying from Wall Street banks. The banking sector reportedly convinced some senators from both parties by arguing that crypto yield products pose a threat to traditional banking. Consequently, it is reported that Chairman Scott is uncertain about securing the support of all Republicans within his own party on this matter.
Ethics Regulations and Political Interests
Another major point of contention for Democrats was the inclusion of ethics regulations designed to limit high-ranking public officials from personally profiting from the cryptocurrency sector. These proposals were reportedly rejected by Donald Trump’s White House and are seen as specifically targeting the interests of the Trump family. Scott stated that this particular issue falls under the jurisdiction of the Senate Ethics Committee rather than his own committee.
Broader Legislative Context
The cryptocurrency sector has invested years in intense lobbying and significant campaign spending to reach this legislative stage. The process is not entirely concluded, as the Senate Agriculture Committee is also expected to consider a similar bill towards the end of the month. However, the Senate Banking Committee has played a leading role in shaping comprehensive crypto regulations in the US.