Key Highlights
- Senators are expected to vote on the crypto market bill on Thursday, amid pressure of government shutdown by January 31.
- Multiple amendments have been filed, including ethics rules for officials and a delay until the CFTC has enough commissioners.
- Other proposals aim to prevent fraud at crypto ATMs and stop foreign adversaries from participating in U.S. crypto markets.
Bipartisan U.S. senators are preparing to vote on a major crypto market structure bill on Thursday in Washington, D.C., following an earlier delay this week due to bad weather. Lawmakers are expected to appear on Capitol Hill to discuss proposed changes and decide whether to add the bill to the CLARITY Act.
This markup is the first major attempt to advance the bill after the Senate Banking Committee delayed its own markup when Coinbase withdrew its support.
Senators introduce new changes to the bill
Multiple lawmakers have submitted amendments to adjust the bill before a final vote. Senator Michael Bennet of Colorado suggested rules to limit crypto holdings and activities for government officials and their families, which include the U.S. president, the Vice President, and United States Representatives. This is to avoid conflict of interest, though it is not yet clear if the committee will approve this proposal.
Senator Amy Klobuchar of Minnesota filed two amendments. One would delay the bill until the Commodity Futures Trading Commission (CFTC) has at least four commissioners, including two from the minority party. The second amendment narrows the definition of a “retail participant” and clarifies the responsibilities of the Digital Commodity Retail Advocate, a role meant to protect small investors.
Senator Dick Durbin proposed measures to ban bailouts for crypto issues and add rules to stop fraud in crypto ATMs. Meanwhile, Senators Tommy Tuberville and Jerry Moran introduced proposals aimed at limiting foreign adversaries from participating in U.S. crypto markets.
These amendments focus on improving oversight and protecting U.S. investors. Senators will discuss each proposal before voting, and all committee members are expected to attend after the weather is clear.
Push for clear crypto rules
In a video posted on X, Senator Kirsten Gillibrand highlighted the need for clear guidelines for the crypto market. She said the bill is essential so that companies and investors can understand how to follow the law. She highlighted that proper regulations would protect consumers and make sure buyers know the risks.
“The need for market structure regulation could not be more important. We need these rules on the road so participants know how to do things legally and appropriately,” she said.
She added that clear rules would help crypto companies continue operating in the U.S., and also support New York’s position as a global financial hub.
The committee will review and vote on each amendment before deciding whether to send the bill to the Senate floor. Some senators, including Roger Marshall and Dick Durbin, expressed that they will not push their credit card swipe fee proposal during the markup. The process will be observed by the crypto space as the Senate faces the government funding deadline, which could lead to a shutdown if not resolved.
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