Senators Pledge Year-End Crypto Bill After Coinbase, Ripple Talks
US lawmakers are speeding up the work on the Crypto Market Structure Bill, after they held closed door talks with top brass from Coinbase...
Quick overview
- US lawmakers are accelerating the Crypto Market Structure Bill discussions, aiming for completion by the end of 2024.
- Both Democratic and Republican senators are seeking a balance between investor protection and market innovation, with input from Coinbase and Ripple executives.
- There is a focus on clarifying DeFi oversight and anti-money laundering rules, targeting exchanges and custodians rather than decentralized protocols.
- A year-end vote on the bill is anticipated, which could significantly impact US crypto regulation and enhance competitiveness in the global digital finance landscape.
US lawmakers are speeding up the work on the Crypto Market Structure Bill, after they held closed door talks with top brass from Coinbase and Ripple this past week. The key is to wrap up federal oversight rules for the digital asset industry by the end of the year .
As per Fox Business’ Eleanor Terrett, both the Democratic and Republican get togethers reflected a pretty unusual sense of urgency and agreement. The senators stressed that they had to find a balance between protecting investors and letting innovation in the market happen – meanwhile the industry bigwigs kept pushing for clearer guidance on what to do with token classification and compliance frameworks.
Lawmakers reportedly made it clear to the participants that they were dead set on making crypto policy non partisan – telling everyone that “we’re not going to slow roll anything”
Key Takeaways
- The aim of this is to get the whole thing finalized by the end of 2024
- Execs from Coinbase and Ripple showed up to both sessions
- Everyone is committed to making clear-cut federal standards
Reps Want DeFi Oversight Clarified
The Republicans got together to focus on the specifics of anti-money laundering (AML) rules and DeFi regulation – the lawmakers effectively acknowledged that the bill needs to figure out how existing laws play out with blockchain systems.
Everyone seemed to agree that the focus should be on what you might call the middle men – that’s exchanges, custodians and stablecoin issuers – rather than going after the actual decentralized protocols. And to top it all off they are even thinking of having a joint working group to review the bill on a line by line basis and to make sure no loopholes get left in there.
Sources say the get togethers were “cautiously productive” and that everyone seems to be getting on board with the idea that DeFi oversight does need to be clear but also not overly restrictive
Congress Aiming for Year-End Approval
There is growing momentum for a year end vote on the bill – which will make it the most significant update to US crypto regulation since that SEC vs Ripple ruling. Both parties now see a unified framework as being pretty much essential for keeping the US competitive in the world of digital finance – especially with Europe and Asia starting to roll out their own crypto policies.
Analysts are saying the bill passing could change how exchanges, DeFi projects and institutional investors operate here in the US – and possibly even build back some confidence in the regulatory landscape
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