Congressional negotiator addresses comprehensive challenges related to cryptocurrency industry regulation in America

Intensive Work on the Legislation Ahead of Committee Session

The campaign to formalize cryptocurrency regulations in the United States is entering a critical stage. Both the Banking Committee and the Senate Agriculture Committee are working to bring their proposals to a vote next week. Chairman Tim Scott confirmed that a hearing on the bill will take place on January 15, regardless of the progress of negotiations. This means that the teams have only a few days to finalize the legislative text.

On Friday, Senator Cynthia Lummis, acting as the Republican negotiator, posted a photo presumably showing the first page of the Responsible Financial Innovation Act draft. The post suggesting an upcoming review of the document indicates that the draft is in its final stages of preparation. The negotiator will be responsible for presenting the text to colleagues in the committee in the coming days.

Flashpoint: Conflict of Interest Regulations

For the bill to be sent to President Donald Trump’s desk, it must receive support from at least seven Democratic senators. However, months of negotiations have not resolved the issue that has become the main point of contention between the parties.

Senator Ruben Gallego, a Democrat responsible for negotiations on behalf of his party, explicitly stated that the requirement prohibiting senior government officials from profiting from the cryptocurrency industry is non-negotiable for him. Gallego expressed this directly, arguing that without this condition, Democrats will not agree to support the bill. The Democratic negotiator emphasizes that this element must be included.

Bipartisan Mobilization for Regulation

Despite ongoing disagreements, the commitment of both sides to develop regulations remains impressive. Talía Davis from the DeFi Education Fund highlights the importance of the efforts made by Democrats in this process, encouraging the public to recognize the party’s engagement.

The cryptocurrency sector is watching the progress on Capitol Hill with interest, although opinions on the speed of actions vary. If both committees approve their versions of the cryptocurrency market structure bills, the texts will be combined into a single bill for a full Senate vote.

Pressure from Traditional Financial Institutions

Beyond legislative negotiations, the cryptocurrency industry faces resistance from traditional finance lobbyists. The opposition focuses on provisions regulating stablecoins and decentralized finance (DeFi).

The upcoming draft from the banking committee may resolve many unresolved issues, but there is a risk it will disappoint some entities whose support is essential for the final passage of the bill. The negotiator must therefore find a delicate balance between the interests of various stakeholders.

The current dynamics in the Senate show that the path to comprehensive cryptocurrency regulation in America requires much more work and compromises than initially assumed.