Bill Markup Postponed Amidst Ongoing Negotiations
The US Senate Banking Committee has postponed its planned markup of a major bill concerning crypto market structure, indicating ongoing divisions in Washington regarding the regulation of digital assets.
I’ve spoken with leaders across the crypto industry, the financial sector, and my Democratic and Republican colleagues, and everyone remains at the table working in good faith. As we take a brief pause before moving to a markup, this market structure bill reflects months of…
Committee Chairman Tim Scott announced early Thursday that the markup, originally scheduled for that day, has been delayed to allow for additional bipartisan negotiations. Scott stated that discussions are continuing with lawmakers from both parties, as well as stakeholders from the crypto and financial sectors. The objective, he explained, is to create legislation that offers regulatory clarity, safeguards consumers, enhances national security, and retains financial innovation within the United States. A new date for the markup has not yet been set.
This delay follows a similar postponement by the Senate Agriculture Committee earlier in the week, which also pushed back its markup of the bill to January 27, citing the need to finalize outstanding issues and secure broader support.
Significance of the Bill and Current Sticking Points
The proposed legislation is of significant interest to the crypto industry as it aims to formally define the oversight roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in digital asset markets. While the House of Representatives has already passed its version of the bill, known as the CLARITY Act, Senate rules mandate approval from both the Banking Committee and the Agriculture Committee before the bill can proceed.
Senate Agriculture Committee Chairman John Boozman indicated that lawmakers have achieved "meaningful progress" but still need to resolve remaining details to ensure the legislation garners widespread bipartisan backing.
Industry Division on Stablecoin Regulations
Despite the progress in Congress, the crypto industry itself is divided regarding the draft legislation released by the Senate Banking Committee earlier this week. A primary point of contention is a provision that limits yield payments on stablecoins from third-party platforms, such as cryptocurrency exchanges. Currently, many exchanges offer incentives to users who hold stablecoins. Banking lobby groups have strongly advocated for blocking these practices, arguing they could increase the risk of bank deposit runs and contribute to the development of a parallel banking system.