The Cryptocurrency Market Structure Bill hasn’t generated much public movement in a month. While it’s difficult to predict the bill, it’s easy to see that time is running out for passage.
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narrative
We will not receive a cryptocurrency market structure bill this month. This is not the end of the process, but we are approaching a timeline that will definitely increase the number of gray hairs people have.
why this is important
Much of what happens around market structure issues, such as SEC staff statements, is not permanent guidance. The SEC has time to develop rules that go through a notice and comment period, but it will take time. Market structure legislation aims to codify the cryptocurrency industry’s goals and regulations into law, making it more difficult for future governments to revoke these rules. In other words, without the CLARIFICATION Act, it’s entirely possible that we’d be having the same conversation in a few years. To be clear, I am not advocating for this bill any more than I would be writing about anything else. This is simply a statement of possible future scenarios.
break it down
Memorial Day — May 25, or about a month from now — has been viewed since at least December as a “must-have” date for advancing legislation if it has any chance of passing before the election. As we enter summer, legislators will be leaving town to work on their campaigns and won’t have time to worry about encryption bills (or much other legislation).
Before Congress leaves, it will consider a bill to fund the Department of Homeland Security (House) and determine whether Kevin Warsh will become the next Federal Reserve Chairman (Senate).
CoinDesk’s Jesse Hamilton last week laid out the additional steps needed to get Clarity across the finish line, namely President Donald Trump’s desk.
The crypto industry desperately needs this bill; last week, more than 100 people signed an open letter urging the Senate Banking Committee to hold a hearing on the hike, which would be the first step toward full passage.
However, it is unclear how close the committee is to progress. Stablecoin yields continue to dominate the discussion, but other unresolved issues have not yet been resolved, at least publicly.
Even if those issues are resolved, the House would need to vote on the bill again.
Congressman French Hill, chairman of the House Financial Services Committee, told CoinDesk earlier this month that the House has addressed many of the outstanding issues surrounding stablecoins and decentralized finance sales practices in its version of the bill, meaning the Senate should be able to find common ground.
“I think the Senate has relayed quite a bit on the House’s work on FIT21. [the Financial Innovation and Technology for the 21st Century Act] “Look at the clarity from the last Congress and this Congress,” he said. “I think you saw that very clearly in the Senate farm markup, and I think you saw it in the basic draft of many of the components of the Senate bill.”
And, okay, not to plug into the Miami consensus again, but we’ll get to that next month. It’s going to be a party and you should stop by.
this week
If you have thoughts or questions about what I should discuss next week, or you want to share any other feedback, feel free to email me at nik@technology shout.com or find me at Bluesky @nikhileshde.bsky.social.
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See you next week!
