In the wake of the GENIUS Act, which was signed into law by President Donald Trump in July, attention is now turning to the CLARITY Act, commonly known as the crypto market structure bill. This legislation has encountered substantial delays, exacerbated by the recent government shutdown and a lack of consensus in Congress.
Bank Leaders To Engage With Congress On Key Crypto Topics
This week, the CEOs of Citigroup, Wells Fargo, and Bank of America are scheduled to meet with both Republican and Democratic senators to discuss the evolving legislation surrounding crypto market structure.
The meetings are set for Thursday, and congressional staff have indicated that the CEOs would welcome the chance to share insights on US Global Systemically Important Bank (GSIB) market structure priorities.
The bank leaders are anticipated to hold separate discussions with lawmakers from both parties, emphasizing collaboration to shape effective policies that position the United States as a leader in crypto assets. Among the topics on the agenda are bank permissibility, interest payments, and concerns surrounding illicit finance.
Senate Faces Hurdles
Recent updates on social media platform X (previously Twitter) from Eleanor Terret of Crypto In America, also indicate that obtaining a markup for the crypto market structure bill before the Christmas break poses challenges.
Senator Mark Warner has expressed concerns about pending language from the White House regarding two critical components of the bill—ethics and quorum.
Warner noted the importance of addressing these issues thoughtfully, stating that bipartisan discussions are ongoing, yet productive progress is essential.
The Senate’s approach to the legislation is further complicated by its division into two committees: the Banking Committee, which oversees securities laws, and the Agriculture Committee, which focuses on commodities law.
Both committees have released drafts of their work during the fall, with markup sessions—the process for voting on amendments before a full Senate vote—upcoming. However, both committees are proceeding cautiously due to unresolved issues.
Senators Demand Conflict Of Interest Provisions
The most pressing concerns include the treatment of stablecoin yields, potential conflicts of interest, and the regulatory approach to decentralized finance (DeFi).
Some Democratic senators have indicated that they will not support the legislation unless it includes provisions addressing any possible conflicts relating to the President’s family and their business involvements in the crypto realm.
Moreover, while market structure legislation primarily targets centralized platforms managing user funds, there is a push from the traditional finance sector to classify virtually all crypto-related entities, including developers and validators, as intermediaries.
Market analyst MartyParty provided an encouraging update on December 4, noting that the bipartisan crypto market structure bill is gaining momentum in Congress.
A markup session with the Senate Banking Committee has been tentatively scheduled for December 17-18, just prior to the holiday recess.
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