Senator Lummis Anticipates Crypto Market Structure Markup in April with Senate Passage by Year-End

Momentum is increasing on Capitol Hill this week as lawmakers and industry leaders gathered at the DC Blockchain Summit. Senator Cynthia Lummis expressed her expectation that the long-awaited Senate Banking Committee markup on the crypto market-structure bill, known as the CLARITY Act, will be scheduled for late April.

Key Takeaways

Senator Cynthia Lummis expects the Senate Banking Committee markup on the crypto market-structure bill (CLARITY Act) to be scheduled for late April.
The senator is confident that the full Senate could pass the legislation by the end of this year.
Stablecoin yield is a significant issue being addressed, with language drafted to prevent confusion with traditional banking products.
Negotiators believe they have resolved outstanding issues regarding decentralized finance (DeFi).
Progress is being made towards bipartisan support as communications with both financial sectors continue.

Crypto

Key Breakthroughs on DeFi and Stablecoin Yield

During her speech, Senator Lummis conveyed confidence that the committee would endorse the crypto market structure bill. She believes the full Senate could potentially pass the legislation by the end of the year. “We’re gonna have this thing done come hell or high water by the end of the year,” she affirmed, also noting that a Banking GOP markup is expected in the latter half of April after the Easter recess. “We think we’ve got it,” she stated.

One of the key challenges hindering discussions has been the topic of stablecoin yield. Bank lobbyists have raised concerns that such yield might mimic traditional deposit interest, which could impact deposit accounts. Senator Lummis mentioned that negotiators have developed language to prevent crypto platforms from marketing or providing rewards in ways that resemble traditional banking products or that increase with the user’s asset holdings. “Anything that sounds like banking product terminology will not appear,” she remarked, adding that while she had not reviewed the latest text, Coinbase CEO Brian Armstrong had indicated a willingness to find common ground.

Fast-Tracking the Crypto Bill

Senator Lummis also noted that negotiators believe they have settled unresolved issues surrounding decentralized finance (DeFi). “We think we’ve got the DeFi issue put to bed,” she stated, reflecting both industry and legislative efforts to clarify regulations for peer-to-peer (P2P) and protocol-level services.

She emphasized the current political climate on social media, asserting that there has “never been a more pro-digital asset administration in United States history than @POTUS." She urged her colleagues to capitalize on what she referred to as a unique opportunity to finalize reforms to the crypto market structure.

Further signs of progress were reported by Crypto in America. Journalist Eleanor Terrett shared remarks from Senate Banking Committee Chairman Tim Scott, who expressed hope of having “the first proposal” related to stablecoin yield by the end of the week. Chairman Scott acknowledged the contributions of Senators Angela Alsobrooks and Thom Tillis, along with Patrick Witt, the executive director of the White House Crypto Council, in advancing negotiations between the two financial sectors.

Scott also highlighted that the committee is making strides on issues related to decentralized finance (DeFi), ethics, and quorum matters. Some concerns from the Democratic side are being addressed by proposing minority-party representation at the SEC and CFTC, aimed at fostering bipartisan support.

Crypto The daily chart indicates the total crypto market cap has decreased to $2.44 trillion. Source: TOTAL on TradingView.com

Featured image from OpenArt, chart from TradingView.com