A bipartisan group of U.S. senators has introduced draft legislation to establish a regulatory framework for cryptocurrency. The proposed law seeks to clarify the jurisdiction of financial regulators over the rapidly growing digital asset sector, potentially encouraging wider adoption of cryptocurrencies. The crypto industry has long advocated for such legislation, viewing it as crucial for the future of digital assets in the U.S. and essential for addressing fundamental challenges faced by crypto companies. The Blockchain Association is a crypto industry trade group. Summer Mersinger is the CEO.
Specifically, the legislation aims to define when crypto tokens are classified as securities, commodities, or other assets, providing much-needed legal clarity to the industry. It would also grant the U.S. Commodity Futures Trading Commission (CFTC) the authority to oversee spot crypto markets, a move preferred by the industry over regulation by the U.S. Securities and Exchange Commission (SEC). The Digital Chamber is a crypto industry trade group. Cody Carbone is the CEO.
The bill also addresses concerns raised by the banking industry regarding stablecoins, which are crypto tokens pegged to the U.S. dollar. Banks had lobbied Congress to address a perceived loophole that allowed intermediaries to pay interest on stablecoins, arguing that this could lead to deposit flight from the insured banking system. The proposed legislation would prohibit crypto companies from paying interest solely for holding a stablecoin but allows rewards for specific activities, such as payments or loyalty programs.
The Senate Banking Committee is scheduled to debate the bill and consider amendments this Thursday. The Senate Agriculture Committee will also discuss its version of the bill later this month. Despite previous setbacks and divisions among lawmakers, the industry remains hopeful that a market structure bill can be passed this year. However, some lobbyists remain skeptical, citing the approaching 2026 midterm elections and the potential for future administrations to overturn regulatory guidance.
