US Senate Banking Committee Postpones Cryptocurrency Market Structure Bill Markup

Source: CryptoNewsNet Original Title: Today’s Meeting on US Cryptocurrency Market Legislation Has Been Cancelled – Here’s Why and What You Need to Know Original Link: A critical step in the legislative bill aimed at regulating the cryptocurrency market in the US has been postponed.

The Senate Banking Committee canceled a planned markup hearing on the cryptocurrency market structure bill. The decision comes after a major compliance platform publicly withdrew its support for the bill.

Committee Chairman Tim Scott announced that the bill has been postponed to a later date with no new timeline set. Scott stated that discussions are ongoing with the cryptocurrency sector, the financial world, and senators from both parties, adding, “We aim to create a clear framework that protects consumers, strengthens national security, and ensures the future of finance is built in the United States.”

While the last-minute objection attracted attention, rumors circulated that the bill had faced difficulties before. In his interview, Scott stated that he remained optimistic but acknowledged uncertainty about whether the disagreements in the negotiations could be resolved quickly.

One of the most controversial aspects of the bill involves allowing stablecoin yield programs, which faced intense lobbying from Wall Street banks. The banking sector convinced some senators from both parties by arguing that crypto yield products threaten traditional banking. It is reported that Scott is uncertain whether he has the support of all Republicans in his own party.

Another major point of contention for the Democrats was the need for ethics regulations that would limit high-ranking public officials from profiting personally from the cryptocurrency sector. These proposals were reportedly rejected and are seen as specifically targeting certain political interests. Scott stated that this matter falls under the jurisdiction of the Senate Ethics Committee rather than his own committee.

The cryptocurrency sector has engaged in years of intense lobbying and high campaign spending to reach this stage. The process isn’t entirely over: the Senate Agriculture Committee is also expected to consider a similar bill towards the end of the month. However, the Banking Committee has played a leading role in shaping comprehensive crypto regulations in the US.