The Senate Banking Committee announced on Friday that it will hold a markup on May 14 to advance comprehensive federal crypto legislation for the first time, according to the announcement. This marks the committee’s second attempt after canceling a markup in January when major crypto exchange Coinbase withdrew support over concerns regarding stablecoin rewards treatment.
Previous Delay and Current Status
The stablecoin rewards issue has been reportedly resolved after two key senators released language last week, though bank trade groups have argued that it “falls short” of their requirements.
Legislative Reconciliation Process
Before the bill can proceed to a full Senate vote, the Senate Banking Committee must advance its version and then reconcile it with the version the Senate Agriculture Committee advanced earlier in the year. The Agriculture Committee version moved forward without any Democratic support.
Political and Ethics Obstacles
Democrats cited President Donald Trump’s crypto interests as a major obstacle to the Agriculture Committee bill. According to reports, both Trump and his wife, Melania Trump, launched memecoins ahead of the inauguration, and Trump’s 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. These amendments were ultimately not included in the bill.
Key Negotiator’s Conditions
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 the bill passes out of the Senate with 60 votes, it will proceed 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 also face time pressure as the number of available voting dates dwindles and upcoming midterm elections approach.
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