Crypto: Can Us Lawmakers Pass Crypto Market Structure Before The Midterms?

While the White House has hosted three meetings to discuss how to address stablecoin yield in the Senate's market structure bill, there are no signs of a solution.

While US Senate lawmakers have been working to pass a comprehensive digital asset market structure bill since July, some industry observers in Washington say progress could be “on hold” due to government gridlock.

Since the House of Representatives passed the CLARITY Act last summer and sent the legislation to the other chamber, lawmakers have faced a historically long government shutdown, partisan divides on ethics and debates over stablecoin yield that have likely slowed progress on the bill, which could be further hampered by the upcoming US midterm elections in November.

Eight months ahead of the midterms, one version of the market structure bill focused on commodities regulations has passed the Senate Agriculture Committee, while members of the Senate Banking Committee have yet to address a bill on securities laws and regulations after the panel cancelled a markup in January.

Rebecca Liao, co-founder and CEO at Web3 and AI protocol Saga and a former adviser to then-US President Joe Biden during his 2020 campaign, told Cointelegraph last week that the legislation was effectively “on hold.” She also pushed back against comments by Ohio Senator Bernie Moreno, who said in February that Congress could pass market structure “hopefully by April,” citing a lack of steam for advancing the bill.

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“Earlier, when crypto markets were doing very well, when it seemed that every TradFi institution was coming up with a crypto strategy, looking to load up on the main assets, there was a lot more urgency around any sort of new legislation or new administrative policy coming out of the SEC, CFTC, etc,” said Liao.

“But now that the markets have cooled significantly, and even people within crypto are saying ‘we don’t know, honestly, if the Trump family ended up being a good thing for crypto or not’ a lot of the wind has been taken out of the sails.”

Further complicating the matter in the Senate is the debate around stablecoin rewards, which has resulted in a reported three meetings at the White House between Trump officials and representatives from the crypto and banking industries. Some in banking have argued that having the market structure bill include provisions allowing yield payments to stablecoin holders on third-party platforms

Source: CoinTelegraph