Senate Banking Committee Sets May 14 Markup Date for Crypto Legislation

The Senate Banking Committee announced on Friday that it will hold a markup on May 14 to advance sweeping crypto legislation that would regulate the industry comprehensively at the federal level for the first time. This marks the committee’s second attempt after canceling a January markup when major crypto exchange Coinbase pulled its support over concerns including the treatment of stablecoin rewards.

Stablecoin Issues and Unresolved Concerns

The stablecoin rewards issue has been seemingly resolved after two key senators released language last week, though bank trade groups have argued that it “falls short.” Before the bill can be passed, the Senate Banking Committee must advance its version and then reconcile it with the version the Senate Agriculture Committee advanced earlier in the year.

Political Obstacles and Ethics Concerns

The Agriculture Committee bill moved forward without any Democratic support, with President Donald Trump’s crypto interests cited as a major obstacle. Trump and his wife, Melania Trump, launched memecoins ahead of the inauguration, and his family has led the DeFi and stablecoin project World Liberty Financial, which raised $1.4 billion, according to Bloomberg reporting in January.

At the time of the Senate Agriculture Committee markup, Democrats proposed amendments that would block the president, vice president, lawmakers, and other federal officials from making certain financial transactions involving digital assets, but these amendments were ultimately not included in the bill.

After reconciliation, the full Senate will vote on the bill, where conflicts of interest concerns are expected to be raised. On Wednesday, Democratic Senator Kirsten Gillibrand, one of the bill’s most prominent negotiators, warned that there would be no deal without an ethics provision in place. She also noted a push for consumer protection language in the bill, including provisions around illicit finance and anti-terrorism funding.

Path to Enactment

If a bill passes out of the Senate with 60 votes, it heads to the House for the next steps. The House passed its version last year with bipartisan support. The final step would be the bill being sent to Trump’s desk for his signature.

Lawmakers face a time crunch as the number of dates to vote dwindles and upcoming midterm elections come into focus.