Senate Banking Committee Sets May 14 Markup for Comprehensive Crypto Bill

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, according to the committee’s announcement.

This markup represents the Senate Banking Committee’s second attempt at advancing the bill. The committee cancelled a previous markup in January after major crypto exchange Coinbase withdrew its support over concerns including the treatment of stablecoin rewards. Two key senators released language last week that has seemingly resolved the stablecoin issue, though bank trade groups have argued that the resolution “falls short,” according to The Block’s reporting.

Legislative Process and Timeline

Before a bill becomes law, several steps must occur. The Senate Banking Committee must advance its version of the legislation, and then that version must be reconciled with the version the Senate Agriculture Committee advanced earlier in the year. After reconciliation, the full Senate will vote on the bill, where it will need 60 votes to pass before moving to the House.

Senate Agriculture Committee Action and Democratic Concerns

The Senate Agriculture Committee’s version moved forward without any Democratic support. Democrats cited President Donald Trump’s crypto interests as a major obstacle to support. 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, Bloomberg reported 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. However, these amendments were ultimately not included in the bill.

Ethics Provisions and Consumer Protection

On Wednesday, Democratic Sen. 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.

House and Presidential Action

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

Time Pressure

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