Insights into the Latest Crypto Market Legislation Efforts
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Potential Progress on Crypto Market Legislation
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In a recent discussion, Coinbase CEO Brian Armstrong shared his optimism about the possibility of the Senate’s anticipated crypto market framework being approved within the year, despite encountering some recent challenges.
Strong Bipartisan Support for the Crypto Bill
Following important discussions between crypto industry leaders and lawmakers from both sides of the aisle, Armstrong expressed confidence to CNBC about the Responsible Financial Innovation Act (RFIA) gaining significant traction. The CEO noted, “We had an encouraging dialogue with both Democratic and Republican Senate members. The bipartisan commitment to developing this market structure legislation is evident. It’s crucial for the nation and for the 50 million Americans who engage with cryptocurrency.”
Armstrong highlighted that about 90% of the disagreements delaying the Senate Banking Committee’s draft bill’s progress have been resolved, emphasizing the collaborative efforts underway to tackle any remaining issues.
During meetings with Senate Democrats, Armstrong mentioned that they addressed the leaked proposal to regulate the DeFi sector, which had previously stalled discussions. This document suggested creating a clear regulatory framework for DeFi by defining accountability, clarifying oversight, and preventing misuse of decentralized protocols.
Republican lawmakers and crypto leaders, including Armstrong, criticized the proposal, arguing it could hinder innovation and impede the US’s position as a global crypto leader. Armstrong reported that Senate Democrats assured them that the proposal wasn’t a serious consideration. He emphasized that preserving DeFi as a hub of innovation is vital, and discussions shifted towards regulating centralized intermediaries instead.
Allegations of a heated exchange between a senator and crypto executives emerged from the October 22 meeting, fueled by the leaked proposal and political dynamics.
Is the Market Structure Bill Back on Track?
Journalist Eleanor Terret noted on X that all stakeholders are eager to advance the legislation through bipartisan collaboration. However, questions remain about who will initiate the renewed negotiations, the timing of the markup session, and the impact of the government shutdown on these discussions.
Armstrong believes there’s a strong possibility the crypto market structure bill could progress out of the Senate Banking Committee by Thanksgiving. He anticipates the draft texts may be available “within the next month or so.”
He also pointed out that the government shutdown hasn’t deterred Senate staff from working on the legislation. According to Armstrong, lawmakers hope the market structure bill will mirror the stablecoin framework’s success, which boosted payment activity in the crypto arena and bolstered the US dollar’s global presence.
“My hope is still that it gets done this year. I think we have a good chance of doing it,” he affirmed. “If we get it out of Committee before Thanksgiving, there’s a chance to get it done in December,” he continued. This timeline would allow the two chambers of Congress to come together and get the crypto legislation on the US President’s desk, “hopefully shortly after.”
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