Trump Pushes ‘Very Soon’ Crypto Bill Amid Stablecoin Yield Standoff in Congress
President Donald Trump gave a hint at the World Economic Forum in Davos that a crypto market structure bill is on the cards...
Quick overview
- President Trump hinted at the World Economic Forum that a crypto market structure bill is expected to receive his signature soon.
- Congress is struggling to finalize the crypto legislation, with concerns that delays could push regulatory progress back by up to two years.
- The ongoing debate over stablecoin yield restrictions is causing divisions between Senate committees, complicating the path to a unified bill.
- Industry leaders warn that failure to act promptly could result in significant economic consequences and the potential relocation of US crypto startups.
President Donald Trump gave a hint at the World Economic Forum in Davos that a crypto market structure bill is on the cards for a ” very soon” signature. Talking at the conference to a bunch of influential business leaders, Trump mentioned, “Congress is slaving away right now on crypto legislation, I’m hoping to get my signature on that very soon, opening up a whole bunch of new roads to financial freedom,” adding in the vague term “Bitcoin, all of them”.
This is a pretty stark example of the gap between the White House’s sense of urgency and Congress’s snail’s-pace pace. Just the other day, the Senate Banking Committee bailed on a markup, while the Agriculture Committee is still ploughing on with its version of the bill. Lawmakers are seriously worried that all this dilly-dallying is going to push regulatory progress back by up to 2 years, prompting US crypto startups to seriously consider taking their operations offshore.
Committee Can’t Agree on Stablecoin Yield
The crypto bill that’s been kicking around is being ping-ponged between two Senate committees: Banking (all about securities) and Agriculture (focusing on commodities). The thing is, both have to be merged before it even gets to a Senate vote. And to make things more complicated, the Banking Committee put its markup plans on ice after Coinbase dropped out, saying it couldn’t get behind stablecoin yield restrictions being proposed.
Some Key Points in the Debacle :
- Under the current plan in the GENIUS Act, stablecoin holders would be able to earn higher yields than they’d see at traditional banks.
- Banking lobbyists are trying to limit those yields to stop conventional deposits from being undercut.
- Coinbase CEO Brian Armstrong had this to say – “If it’s gotta be a bad bill then we’d rather not have one at all”, the reason being that he thinks the lobbying tactics being used are completely un-American.
- Meanwhile, the Agriculture Committee is pushing on with its markup on January 27, and that’s going to be all about CFTC oversight – not any yield caps.
The way it’s shaping up is that both corporate lobbying and executive pressure will have a huge say in the future shape of US digital asset regulation.
What’s Up for Grabs in US Crypto Markets
Lawmakers are warning that the delays will have serious economic consequences. Just the other day, Sen. Cynthia Lummis (R-WY) kept on about how there’s only 11 months left to get something done before she goes – and then there’s Peter Smith, the CEO of the Blockchain Association, who is saying that if this bill stalls, we could be looking at a 2-year setback. Rep. William Timmons (R-SC) even pointed out that if the US doesn’t get its act together, tens of billions could well end up moving to a country with clearer rules.
Things are moving fast in the markets too – the NYSE is actually planning a blockchain-based tokenized securities platform with instant settlement and 24/7 trading – and Sen. Thom Tillis (R-NC) made the point that if the US doesn’t get this sorted, we’re going to be left behind in banking. Whatever happens, the resolution of the stablecoin yield debate is going to be key – and it’s clear that despite White House pressure, industry leaders aren’t going to give an inch, leaving the whole future of US crypto legislation looking very uncertain.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save