Senator Scott announced on , that the Senate Banking Committee would hold a vote on the market structure bill on . According to CoinDesk, this move follows over six months of dedicated work to prepare multiple drafts for committee members. Simultaneously, the Digital Chamber, an advocacy group for blockchain technology and digital assets, is organizing a lobbying campaign in Washington D.C.. Executives from firms including Binance.US, Unicoin, Anchorage Digital, Crypto.com, and Hedera are expected to participate, aiming to address lawmakers’ questions regarding the market structure bill.
The proposed Senate bill seeks to allocate jurisdiction between federal agencies, specifically the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), and define “ancillary assets” to clarify which cryptocurrencies are not securities. This legislative effort mirrors the House of Representatives’ Digital Asset Market Clarity Act (H.R. 3633), which passed the House in and aims to provide a foundational regulatory framework for digital assets. The House bill, introduced on , would grant the CFTC exclusive regulatory jurisdiction for “digital commodities”. According to Cody Carbone, CEO of the Digital Chamber, there is motivation from both Republicans and Democrats to advance this legislation, with a hope for sufficient support to move the bill forward even without 100% agreement. The Digital Chamber’s mission is to promote the acceptance and use of digital assets and blockchain-based technologies through education and advocacy.
The impetus for this legislative action stems from a bipartisan recognition of the need for clear regulations in the crypto market. Democratic requests, including illicit-finance points reflecting input from the Treasury Department, have been incorporated into the draft. The effort also aims to provide clarity for digital asset markets, addressing concerns that regulatory uncertainty has led to significant outflows from crypto investment products. Both parties appear motivated to establish a framework that could foster innovation while addressing investor protection and combating illicit activities.
Specific details regarding compromises on the treatment of decentralized finance (DeFi) and whether stablecoins will be permitted to offer yield or rewards remain unresolved. While Senator Scott has stated his intent to proceed with a markup regardless of full bipartisan support, the final language of the bill and the extent of bipartisan agreement on these contentious issues are not yet public. The precise impact on user refunds or compensation in various scenarios is also not explicitly detailed in current discussions.
Following the anticipated markup on , the Senate bill would then proceed through a matching process where amendments could be introduced and debated. If approved, a Senate version could be reconciled with the House’s Digital Asset Market Clarity Act, potentially leading to comprehensive federal legislation. The industry’s lobbying efforts on , represent a critical step in influencing these ongoing discussions.
Individuals and entities involved in the digital asset space should closely monitor the legislative developments within the Senate Banking Committee, particularly around the , markup. Staying informed on the evolving regulatory landscape, especially concerning DeFi and stablecoin provisions, is advisable. Reviewing communications from industry advocacy groups like the Digital Chamber may provide insights into industry perspectives and potential impacts. Users of digital asset platforms should also be prepared for potential changes in operational requirements or offerings as new regulations take shape.
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