Discussions Continue on Crypto Regulation Bill
Although the US Senate Banking Committee postponed its scheduled hearing on Thursday, several lawmakers affirmed that negotiations on comprehensive crypto regulation are still ongoing and emphasized the bill remains viable.
Focus on Regulatory Division of Authority
The proposed legislation aims to define the roles of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) in overseeing digital assets, a key point of contention drawing widespread attention.
Mixed Industry Responses
- Brian Armstrong, CEO of Coinbase, withdrew his support for the bill, citing concerns about the SEC’s growing authority and the handling of stablecoin yields.
- Committee Chair Tim Scott later announced the hearing’s postponement, signaling efforts to build broader agreement.
Bipartisan Talks Still Ongoing
Republican Senators Cynthia Lummis and Bill Hagerty both stressed that negotiations between both parties remain active, expressing hope for a bipartisan version of the bill in the near term.
Industry Pushes for Progress
Prominent crypto exchange Kraken and the Digital Chamber urged lawmakers to move forward with the legislation, warning that regulatory ambiguity could create further uncertainty for the sector.
Differing Analyst Perspectives
- Benchmark analysts suggested the delay could provide valuable time for bipartisan alignment, potentially strengthening the bill’s prospects.
- However, TD Cowen analysts cautioned that balancing industry concerns with bipartisan backing may prove challenging, especially with the approaching midterm elections adding time constraints.