Key takeaways
Why is the new calendar crucial?
Doing so by early next year would “unlock crypto,” according to Coinbase CEO.
Will he be able to get the final pass as planned?
DeFi regulation remains a major concern, alongside another likely obstacle from Democrats.
Senate Banking Committee Chairman Senator Tim Scott said they plan to improve the crypto market structure bill next month.
During a interview with Fox Business on November 18, Scott added,
“Next month we think we can make a difference, in both committees, and bring this to the Senate early next year.”
Source:
Scott previously set a September deadline for the increase, but he blamed Democrats for “blocking” the bill.
This was a reference to the opposition of part of the Democrats, led by Reuben Gallego, who propose a controversial DeFi regulation that sparked an industry-wide backlash and nearly halted the bill’s momentum.
But Jane Garza, a spokesperson for Gallego, dismissed Scott’s comments:
“Taking the time necessary to produce a strong, bipartisan product is not the same as stalling, and implying that Democrats don’t want to make it happen is not productive.”
However, later in October, the various factions of the Congress got back on track after intense lobbying from crypto leaders.
Fast forward to November, the Senate Agriculture Committee, charged with the CFTC side of the bill, released a draft discussion paper that left the entire DeFi section for additional comments.
This is a pre-marking process that will combine the two committees’ drafts into coherent final legislation.
What’s the next step after markup?
In the legislative process, markups play a crucial role in the development of bills. During this stage, committees work together to review the bill. They discuss, edit and refine the text to ensure its clarity and alignment with policy objectives.
Once the revisions are complete, the committee votes to advance the bill for final debate and vote in the House.
For the Senate Banking Committee, its draft covers the SEC side of the mandate, including securities and investor protection, among others.
And at the time of writing, the Senate’s banking sector plan only takes into account Republican input, with Democratic input having not yet been taken into account.
It remains to be seen whether DeFi regulation will become another stumbling block during the planned markup process.
For his part, Coinbase CEO Brian Armstrong noted that there was a “good chance” it would be completed by December and that President Donald Trump would likely approve it soon after. He added,
“This would be an important step in unlocking crypto with clear rules in the United States, which would benefit all businesses.”
However, the markup process will not go smoothly, warned Cody Carbone, CEO of Digital Chamber, a blockchain trade association. He note,
“This bill only works if these committees come together and make one product.”
