Potential Delay for Crypto Legislation

Reports indicate that the Senate Banking Committee’s current priority is addressing affordability issues associated with President Donald Trump’s housing initiatives, which may lead to a delay in advancing the anticipated crypto market structure bill. Bloomberg sources suggest that this realignment in focus could push back the legislative timeline for several weeks.

On this past Tuesday, Trump signed an executive order preventing Wall Street investors from acquiring single-family homes, aiming to alleviate housing costs ahead of the approaching midterm elections in November. Bloomberg has highlighted that the Banking Committee is likely to prioritize the implementation of this executive action, thereby postponing discussions on the crypto bill until late February or possibly March.

This could mark yet another setback for the crypto bill, which has already faced delays due to negotiations aimed at garnering bipartisan support. The legislation outlines regulatory frameworks for how the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) will oversee cryptocurrency markets.

Additionally, major lobbyist Coinbase has withdrawn its support for the bill due to conflicts over certain provisions, particularly those concerning stablecoins and decentralized platforms.

Politics Surrounding the Bill

Republicans are keen to achieve policy victories ahead of the midterm elections, especially given current polling showing Democrats with a substantial lead. The rising cost of living is a pressing concern for voters as they approach the polls. Patrick Witt, the top crypto advisor at the White House, emphasized the urgency in passing the crypto bill to maintain legislative momentum, acknowledging that compromises will be necessary to secure enough votes.

Meanwhile, Agriculture Committee Chairman John Boozman has reported ongoing differences regarding fundamental policy issues, signaling a challenging path ahead for the bill’s reconciled version through both the Senate and House.