Banking Industry Concerns Delay Crypto Legislation Progress

Crypto Bill Faces Further Delays

The anticipated CLARITY Act, a key crypto market structure bill, is facing potential delays until late February or March. The Senate Banking Committee, responsible for the securities and SEC aspects of the bill, is redirecting its attention to President Donald Trump's affordable housing agenda, as reported by Bloomberg. This shift in focus could postpone the crypto legislation by several weeks.

Initially, the bill encountered obstacles when Coinbase withdrew its support in mid-January, citing issues such as the prohibition of stablecoin yields. Some in the crypto sector endorsed Coinbase's stance that 'no bill is better than a bad bill.' Meanwhile, the banking industry has been vocal against stablecoin yields, viewing them as a threat to community banks and rural America.

White House Calls for Compromise

David Sacks, the White House AI and Crypto Czar, expressed support for finding a compromise to advance the bill. Sacks noted that the bill is not dead, drawing parallels to the stablecoin bill, the GENIUS Act, which faced multiple setbacks before eventual passage. Patrick Witt, Trump's crypto advisor, echoed this optimism, urging stakeholders not to let perfection hinder progress.

Senate Agriculture's Challenges

The Senate Agriculture Committee, handling the commodity and CFTC aspects of the bill, has struggled to secure bipartisan backing. Despite postponing the bill's markup by two weeks, Chair John Boozman announced plans to proceed without Democratic support. Achieving the necessary 60 votes to advance the bill remains uncertain.

Final Thoughts

• The White House urges a stablecoin yield compromise to move the crypto bill forward.
• The Senate Agriculture Committee faces challenges in advancing the bill without bipartisan support.