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U.S. Lawmakers Near Draft of Crypto Market Structure Bill Despite Political Gridlock
The US crypto market structure bill has made significant progress despite the challenges posed by the longest government shutdown in the country’s history, now in its 37th day. Crypto Czar David Sacks expressed confidence that a bipartisan draft of the legislation would be ready soon.
In a recent X post, Sacks posited that the discussions on the market structure bill were progressing. This development comes as a surprise, given the complexity of the bill and the current political gridlock.
Bipartisan Progress: Crypto Bill Moves Forward
The US crypto market structure bill is getting support, and David Sacks has said that the “great progress” is very evident in the talks. Recent news releases indicate that a bipartisan draft will be ready soon. The bill is expected to provide clear trading and regulatory standards for digital assets and DeFi, which are essential for the country’s crypto policy to move forward.
Senator John Boozman, the most influential Republican of the Senate Agriculture Committee, had a conversation with White House crypto czar David Sacks and Democratic Senator Cory Booker in order to work out the details of the crypto market structure bill.
Furthermore, Senator Cynthia Lummis has described the scenario where bipartisan discussions are going on, and they are mainly focused on making some technical changes to get more support from the Senate. Still, she allowed that the probability of the bill passing at the end of the year is very low; however, the interaction at the staff level will be like a vehicle advancing the bill to subsequent stages. She added,
“Right now, we’re working at the staff level every single day to get the votes necessary in committee to get it out of committee…These are bipartisan discussions. They are down at the granular level. We’re making tremendous progress […]”
Stalled No More
The development of this legislation follows a period where the Senate had a deadlock over the bill. This was primarily due to the contrasting views on how to govern decentralized finance (DeFi). On one hand, the Democrats want the compliance standards to be more stringent. On the other hand, the Republicans argue that if the sector is regulated heavily, it could negatively impact the pace of innovation.
This bill is going to be instrumental in defining the use of cryptocurrency in the U.S. legislative environment during the current session of Congress. It was met with a lot of enthusiasm in July when it was approved by the House of Representatives. People presumed that the bill would be easily passed by the Senate with support from both parties.
However, talks have been tougher as Democrats insist on adding the decentralized finance-related provisions, and the shutdown, which is still going on for the 36th day, has not been resolved yet. It is uncertain how senators will prioritize the crypto legislation with the arrival of a spending bill that will end the shutdown and thus release funds to financial agencies such as the SEC and CFTC.
How the US Shutdown Impacted the Crypto Market Structure Bill?
The current government shutdown is holding back the bill’s progress, it is impeding committee activities, and making it difficult for the SEC and CFTC to coordinate.
On the other hand, the government shutdown has been an unexpected factor in giving the legislators the time to concentrate on the fine points of the bill. Patrick Witt, director of Trump’s Digital Assets Council, said the senators and administration officials are utilizing the downtime to resolve the definitions and enforcement language, thus, possibly, making it easier to move forward.
Therefore, in spite of the political difficulties, the legislators are anticipating a meeting with the White House in the near future to finalize the crucial details of the bill. With Sacks’s optimism driving the process, officials anticipate a new draft version of the bill, signaling progress on digital asset regulation.
Conclusion
To wrap it up, while the longest government shutdown in US history has certainly made it hard, the crypto market structure bill is still getting lots of steam. Discussions between both parties are still happening, and the legislators are putting a lot of effort into ironing out the details of the bill.
Thanks to endorsements from prominent figures such as Senator John Boozman and Senator Cynthia Lummis, as well as White House crypto czar David Sacks, the bill is expected to advance significantly in the near future. There is still a possibility that the bill will not be passed at the end of the year, but the move is a great indication of a bright future for digital asset regulation in the US.
Frequently Asked Questions
- What is the intention of the US crypto market structure legislation?
The legislation’s goal is to set up well-defined rules regarding the regulation and trading of digital assets and DeFi in the US. - In what way did the government shutdown impact the bill’s progress?
As a result of the shutdown, the work of committees was slowed down; however, it also provided legislators with the opportunity to work out the details of the bill. - Who are the main characters responsible for the bill’s progress?
Among the important characters are Senators John Boozman, Cynthia Lummis, Cory Booker, and the White House crypto czar David Sacks.
Glossary
- SEC (Securities and Exchange Commission): The US agency responsible for enforcing laws against market manipulation and protecting investors.
- CFTC (Commodity Futures Trading Commission): The federal agency that regulates futures and derivatives markets in the US.
- Crypto Czar: A government official responsible for overseeing and coordinating cryptocurrency-related policy and regulation.
- Market Structure Bill: Proposed legislation aimed at defining how digital assets and crypto markets are regulated and traded.
- Government Shutdown: A situation where federal government operations are suspended due to the lack of approved funding.
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