Crypto Rules: Senate Takes Extra Time to Get It Right
The Senate Agriculture Committee has decided to postpone the review of a crucial crypto bill until late January. They aim to ensure sufficient backing before proceeding.
Chairman John Boozman stated that while progress has been made, more time is needed to finalize details and secure broad support.
Why This Bill Matters
This bill is significant for the crypto world, as it seeks to clarify the regulatory roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in overseeing crypto markets.
Initially, the Senate Agriculture Committee (which oversees the CFTC) planned to review the bill on Thursday, aligning with the Senate Banking Committee's review. However, they opted for more time.
Key Differences from the House's CLARITY Act
The bill under discussion differs from the House's CLARITY Act, which passed in July. Proposed changes include:
- A ban on stablecoin yield payments
- Provisions for ethics laws
- Conflict-of-interest protections pushed by some Democratic Senators to prevent public officials from profiting off crypto connections.
Lobbying Efforts
- Bank lobbyists are advocating for a ban on third-party platforms offering stablecoin yields.
- Crypto lobby groups want software developers and non-custodial platforms excluded from being classified as intermediaries, which would subject them to financial regulations.
Predictions and Delays
Investment bank TD Cowen predicts that the midterms might reduce the support needed to pass the bill, suggesting it's more likely to pass in 2027, with implementation in 2029.
This delay highlights the complexity of creating clear and fair crypto regulations, requiring careful consideration and broad agreement.
