Differences Linger as Senate Reveals Updated Crypto Market Structure Bill

TLDR

• The Senate Agriculture Committee has released an updated draft of the crypto market structure bill ahead of a hearing next week.
• Republican Chair Sen. John Boozman noted that while progress has been made, significant policy differences still exist.
• The updated bill seeks to enhance consumer protections and provide more authority to the Commodity Futures Trading Commission.
• Key unresolved issues include the regulation of decentralized finance, the role of the SEC, and the treatment of stablecoins.
• The bill will need to be reconciled with a version from the Senate Banking Committee before moving forward.

The U.S. Senate Agriculture Committee has released an updated draft of its crypto market structure bill, ahead of a hearing next week. Republican Chair Sen. John Boozman stated that, although progress had been made, differences on key policy issues remain. The draft includes new proposals aimed at enhancing consumer protections and granting additional authority to the Commodity Futures Trading Commission (CFTC), yet critical disagreements persist between the parties.

Key Provisions of the Updated Bill

The Senate Agriculture Committee’s newly released draft of the crypto market structure bill aims to provide clarity on the regulation of digital assets. Sen. Boozman noted that, despite ongoing disagreements, the bill reflects months of collaboration between Republicans and Democrats. One of the primary goals is to enhance consumer protections and bolster the CFTC’s regulatory powers, which could have a significant impact on the future of the crypto market.

However, the bill still leaves several issues unresolved. For example, the treatment of decentralized finance (DeFi), the collaboration between the CFTC and the Securities and Exchange Commission (SEC), and the regulation of stablecoins are areas where the committee has yet to reach a consensus. While the earlier draft included brackets to highlight these unresolved issues, the latest version omits such sections, signaling a step closer to finalizing the legislation.

Crypto Market Structure Bill Faces Uncertainty Ahead of Upcoming Hearings

Although the updated crypto market structure bill has advanced, challenges remain in reconciling the differences between the Senate Agriculture Committee and other congressional bodies. In particular, the bill must be harmonized with a similar version from the Senate Banking Committee, which oversees the SEC. The differences between the two versions of the bill could delay the legislative process as lawmakers work to align their priorities.

The Senate Agriculture Committee is scheduled to hold a hearing on January 27 to discuss and potentially amend the bill. This hearing will be a critical moment for both parties, as they seek to find common ground on issues that could shape the regulatory landscape for digital assets in the U.S.

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