The U.S. Senate Banking Committee announced on Friday that it will hold a markup on May 14 to advance comprehensive federal cryptocurrency legislation, marking the committee’s second attempt after canceling a January markup when major crypto exchange Coinbase withdrew its support.
Second Attempt After Coinbase Withdrawal
The January cancellation followed Coinbase’s withdrawal of support over concerns including the treatment of stablecoin rewards. According to the announcement, two key senators released language last week addressing the stablecoin rewards issue, though bank trade groups have argued that the resolution “falls short.”
Legislative Pathway and Committee Reconciliation
Before the bill reaches a full Senate vote, two steps must occur: the Senate Banking Committee must advance its version, and then reconcile that version with the one the Senate Agriculture Committee advanced earlier in the year. The Agriculture Committee’s bill moved forward without any Democratic support, according to the source.
Trump Family Crypto Holdings and Democratic Concerns
Democrats cited President Donald Trump’s crypto interests as a major obstacle to bipartisan support in the Agriculture Committee. Both Trump and his wife, Melania Trump, launched memecoins ahead of the inauguration. Trump’s family also leads the DeFi and stablecoin project World Liberty Financial, which raised $1.4 billion, Bloomberg reported 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, these amendments were ultimately not included in the bill.
Ethics Provision and Consumer Protection Negotiations
On Wednesday, Democratic Senator Kirsten Gillibrand, one of the bill’s most prominent negotiators, warned that there would be no deal without an ethics provision in place. She also noted a push for consumer protection language in the bill, including provisions around illicit finance and anti-terrorism funding.
Path to Enactment and Time Pressure
If a bill passes the full Senate with 60 votes, it advances to the House for consideration. The House passed its version last year with bipartisan support. The final step would be the bill being sent to President Trump’s desk for his signature.
Lawmakers face a time crunch as the number of available voting dates dwindles and upcoming midterm elections take center stage.
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