The Senate Banking Committee has postponed its plan to mark up crypto market structure legislation after growing industry backlash and political disagreements blocked progress.
What happened: Journalist and presenter Eleanor Terrett On Friday, he noted that frustration remained high nearly a day after the GOP-led banking committee withdrew the markup.
However, insiders believe the bill is not dead.
Industry participants and committee members say that if banks, Coinbase (NASDAQ:COIN) and Senate Democrats can quickly reach a compromise on stable coin yield, the legislation is likely to advance again.
Section 505, which concerns tokenized securities, is increasingly seen as a non-issue.
Tokenization companies say Coinbase’s objections came from language taken out of context.
Key stakeholders including Coinbase CEO Brian Armstrongreported that the section could be significantly revised, if not removed altogether.
Ethics issues remain unresolved and discussions continue between the White House and the Senate.
Procedurally, the Banking Committee’s delay should not disrupt the Agriculture Committee’s schedule.
Sources say sequencing is less important and a strong bipartisan agreement emerging from the agricultural sector could help move the banking bill through the Senate, similar to the momentum built around the Clarity Act in the House last summer.
Why it’s important: Terrett noted that some of the damage was mitigated after major crypto companies and industry groups, including a16z, Circle (NASDAQ:CRCL)Paradigm, Kraken, Ripple (NASDAQ:XRP)Coin Center and the Digital Chamber have publicly urged lawmakers to conduct a markup and continue negotiations rather than abandon the bill.
President of the Senate in charge of banks Tim Scott (R-SC) said negotiations were continuing in good faith, although he did not provide a timeline for when the markup might be rescheduled.
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