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. The previous markup, scheduled for January, was cancelled after major crypto exchange Coinbase withdrew its support, citing concerns including the treatment of stablecoin rewards.
Previous Markup Cancellation and Stablecoin Issue
Coinbase’s withdrawal in January prompted the cancellation of the earlier markup attempt. However, the stablecoin rewards issue has been reportedly resolved following language released by two key senators last week, according to the article. Bank trade groups have argued that the resolution “falls short” of their expectations.
Legislative Process and Committee Reconciliation
Before the bill can reach the full Senate for a vote, multiple steps must occur. The Senate Banking Committee must advance its version of the bill, and then reconcile that version with the bill that the Senate Agriculture Committee advanced earlier in the year. The Agriculture Committee’s version moved forward without any Democratic support.
Political Obstacles and Ethics Concerns
Democrats cited President Donald Trump’s crypto interests as a major obstacle to the Agriculture Committee’s markup. According to the article, Trump and his wife, Melania Trump, launched memecoins ahead of the inauguration, and Trump’s family has led the DeFi and stablecoin project World Liberty Financial, which raised $1.4 billion, Bloomberg reported in January.
During 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.
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. She also noted a push for consumer protection language in the bill, including provisions around illicit finance and anti-terrorism funding.
Path to Enactment
If the bill passes out of the Senate with 60 votes, it will be sent to the House for the next steps. The House passed its version last year with bipartisan support. The final step would involve the bill being sent to Trump’s desk for his signature.
Time Constraints
Lawmakers face a time crunch as the number of dates available to vote dwindles and upcoming midterm elections come into focus.
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