Discussions on Crypto Market Structure: Senator Lummis Highlights Upcoming Legislation

Senators are currently engaged in bipartisan talks regarding a pending bill aimed at establishing a clearer structure for the cryptocurrency market. Key negotiator Senator Cynthia Lummis is optimistic about releasing a new draft of the bill soon, with the goal of finalizing it before the congressional holiday break.

Key Takeaways

Bipartisan discussions are ongoing regarding a new cryptocurrency market structure bill.
Senator Cynthia Lummis is hopeful for a draft release this week.
The GOP has proposed over 30 amendments to the existing legislation to reach a compromise with Democrats.
Key concessions include consumer protection standards and potential White House approval language.

Crypto

Lummis Advocates for Quick Progress on Crypto Laws

In a recent panel hosted by the Blockchain Association, Senator Lummis emphasized the need for swift legislative progress. She suggested that it would be beneficial for lawmakers to finish drafting the bill and move towards markup next week, allowing everyone to relax for the Christmas break.

Politico has reported that Senate Banking Republicans recently submitted a proposal to their Democratic colleagues, incorporating more than 30 amendments to an earlier version of the bill. This three-page document details adjustments that GOP senators on the Banking Committee believe will satisfy some of the Democratic concerns while preserving key elements of the initial proposal.

Senate Banking Committee Chair Tim Scott, along with other Republicans, is eager to complete the markup process next week. However, some Democrats have raised doubts about this timeline. Following a recent meeting, Democrats sent a response regarding the GOP's amendments, but specifics of their feedback remain unclear.

Key Concessions in the GOP’s Proposal

The GOP’s latest proposal highlights various aspects from a September framework for crypto market structure that they are willing to incorporate into a bipartisan bill. They aim to reconcile differences with Democratic lawmakers through a detailed two-column table that lists 38 concessions made by the Republicans in exchange for retaining or adjusting 32 sections of the original Responsible Financial Innovation Act discussion draft.

Among the notable concessions is the inclusion of language that may reflect the approval of the White House. This could potentially alleviate some Democratic concerns related to appointments to key regulatory bodies, such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

Additionally, the proposal outlines ethics provisions to address ongoing scrutiny regarding the Trump family’s business dealings within the crypto sector. Lummis mentioned a prior ethics proposal, negotiated with Senator Ruben Gallego, which was rejected by the White House. She is determined to work collaboratively with Democratic senators to revisit the ethics issue.

Other significant concessions presented by the Republicans involve introducing consumer protection standards for digital assets, proposing language concerning bankruptcy regulations, setting federal baseline standards for cryptocurrency ATMs, and outlining risk management protocols for digital asset intermediaries.

Crypto The daily chart indicates a notable increase in the total cryptocurrency market cap, approaching $3.13 trillion as of Tuesday. Source: TOTAL on TradingView.com

Featured image from DALL-E, chart from TradingView.com