Senate Banking Committee Lawmakers Optimistic About Crypto Bill Progress

TLDR

• Senate Banking Committee members remain optimistic about advancing the crypto bill despite recent delays and setbacks.
• Coinbase CEO Brian Armstrong withdrew support for the bill over concerns about stablecoin returns and SEC authority.
• Lawmakers, including Sen. Cynthia Lummis, remain confident that a bipartisan agreement is within reach.
• The crypto industry continues to support the bill, urging lawmakers not to abandon efforts for regulatory clarity.
• The Senate Agriculture Committee’s rescheduled hearing will add more time to build bipartisan support for the bill.

Lawmakers are determined to move forward with the crypto bill, despite recent delays and setbacks. The Senate Banking Committee had planned to discuss a sweeping crypto bill on Thursday, but Coinbase CEO Brian Armstrong withdrew support. The delay occurred after Armstrong raised concerns about stablecoin returns and SEC authority, prompting committee Chair Tim Scott to postpone the hearing.

Lawmakers Stay Optimistic About Advancing Crypto Bill

Although the Senate Banking Committee postponed the hearing, several committee members remain optimistic. Sen. Cynthia Lummis, R-Wyo., assured on social media that lawmakers are “closer than ever” to reaching an agreement. She expressed confidence that bipartisan support would lead to a bill the industry and America could be proud of.

Sen. Bill Hagerty, R-Tenn., echoed Lummis’ sentiments, expressing confidence in reaching a consensus quickly. He emphasized that the legislation aims to ensure innovation continues to thrive in the U.S. “I look forward to passing legislation that ensures this innovative technology flourishes in the United States for decades to come,” Hagerty said in a recent post.

The crypto industry continues to support the crypto bill despite the delay. Kraken co-CEO Arjun Sethi reaffirmed his commitment to working on market structure legislation, highlighting the importance of moving forward. “Walking away now would not preserve the status quo in practice,” Sethi said. “It would lock in uncertainty and leave American companies operating under ambiguity.”

The Digital Chamber CEO, Cody Carbone, also voiced his concern, stating that inaction is unacceptable. “We cannot afford to walk away from the table at a moment when clarity is within reach,” Carbone remarked in a statement on Thursday. Many crypto advocates emphasize the need for legislative clarity to avoid prolonged uncertainty.

Legislative Delays May Provide More Time for Consensus

Despite the setbacks, analysts believe the delay could prove beneficial in the long run. Benchmark analyst Mark Palmer noted that the postponement allows senators to build more bipartisan support. It provides lawmakers with additional time to refine the bill before it moves forward.

The Senate Agriculture Committee had initially scheduled a hearing on the bill for Thursday but rescheduled it for later in January. Both committees will need to reconcile their versions of the bill before a final vote in the Senate. Palmer noted that if successful, the bill could lead to the most substantial regulatory restructuring of U.S. financial markets in recent years.

While the delay offers more time for negotiations, gaining Democrat support remains a crucial challenge. TD Cowen’s Washington Research Group highlighted that addressing Coinbase’s concerns may complicate the process. They pointed out that the objections raised by Armstrong could be hard to resolve without altering provisions already negotiated with Democrats.

The importance of securing bipartisan support is clear. Most legislation requires 60 votes to pass in the Senate, which means Democrats’ votes will be crucial to the crypto bill’s success. Despite these hurdles, lawmakers remain committed to finalizing the bill before the upcoming midterm elections.