The Senate Banking Committee announced on Friday that it will hold a markup on May 14 to advance a bill that would regulate the cryptocurrency industry comprehensively at the federal level for the first time, according to The Block. This marks the committee’s second attempt after cancelling a markup in January when major crypto exchange Coinbase withdrew support over concerns including the treatment of stablecoin rewards.
Stablecoin Resolution and Outstanding Issues
The stablecoin rewards issue has been seemingly resolved after two key senators released language last week. However, bank trade groups have argued that the resolution “falls short” of their requirements.
Legislative Pathway and Reconciliation
Before a 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. After reconciliation, the full Senate will vote on the bill. If it passes with 60 votes, it heads to the House, which passed its version last year with bipartisan support. The final step would be the bill being sent to President Trump’s desk for his signature.
Trump Family Crypto Interests and Democratic Opposition
The Senate Agriculture Committee advanced its bill without any Democratic support, with Democrats citing President Donald Trump’s crypto interests as a major obstacle. Both 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. 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 around illicit finance and anti-terrorism funding.
Time Constraints
Lawmakers face a time crunch as the number of dates to vote dwindles and upcoming midterm elections come into focus.
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