The Senate Banking Committee announced on Friday that it will hold a markup on May 14 to advance comprehensive federal crypto legislation, marking the committee’s second attempt to move the bill forward after a January cancellation. According to the article, the January markup was cancelled after major crypto exchange Coinbase withdrew its support due to concerns including the treatment of stablecoin rewards.
Previous Setback and Current Progress
The January cancellation represented a significant delay in the legislative process. However, according to the source, the stablecoin rewards issue has been seemingly resolved after two key senators released language last week, though bank trade groups have argued that it “falls short.”
Legislative Process Ahead
Before the bill can be passed, several steps must occur. The Senate Banking Committee must advance its version, and then reconcile that with the version the Senate Agriculture Committee advanced earlier in the year. According to the source, the Senate Agriculture Committee’s bill moved forward without any Democratic support in the agriculture panel, citing President Donald Trump’s crypto interests as a major obstacle.
Political Context and Trump’s Crypto Involvement
The source notes that both Trump and his wife, Melania Trump, launched memecoins ahead of the inauguration, and his family has led the DeFi and stablecoin project World Liberty Financial, which raised $1.4 billion, according to Bloomberg reporting in January.
At the time of the Senate Agriculture Committee markup, Democrats proposed amendments that would block the president, vice president, lawmakers, and other federal officials from making certain financial transactions involving digital assets. However, according to the source, these amendments were ultimately not included in the bill.
Ethics and Consumer Protection Requirements
On Wednesday, Democratic Sen. Kirsten Gillibrand, one of the bill’s most prominent negotiators, warned that there would be no deal without an ethics provision in place. The source also notes that Gillibrand highlighted a push for consumer protection language in the bill, including provisions around illicit finance and anti-terrorism funding.
Path to Final Passage
After being reconciled between the two Senate committees, the full Senate will vote on the bill, where conflicts of interest concerns are expected to be raised. If a bill passes out of the Senate with 60 votes, it heads to the House for the next steps. According to the source, the House passed its version last year with bipartisan support. The final step would be the bill being sent to Trump’s desk for his signature.
According to the source, lawmakers also face a time crunch as the number of dates to vote dwindles and upcoming midterm elections come front and center.
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