GOP’s Crypto Bill In Jeopardy As Senator Advocates For Delayed Action

Senator John Kennedy, a Republican member of the Senate Banking Committee, has raised significant concerns regarding the advancement of a much-anticipated cryptocurrency market structure bill. 

In recent remarks, Kennedy emphasized that lawmakers should not fast-track the process of passing the bill, casting uncertainty over the timeline promised by Committee Chair Tim Scott.

Concerns Over Readiness For Crypto Market Structure Bill

According to a report by POLITICO, Kennedy articulated his apprehensions during a discussion about the bill, stating, “I don’t think we’re ready.” He noted that many stakeholders, including himself, still have numerous questions about the proposed legislation. 

Scott and other Republicans, including pro-crypto Senator Cynthia Lummis, have championed the bill and are eager to see it pass by the end of the month. 

A spokesperson for Senator Scott defended the push for the bill, asserting that advancing a clear, bipartisan framework for digital assets is long overdue.

This sentiment highlights the urgency felt by some lawmakers, especially given that the original Responsible Financial Innovation Act was introduced by Senators Cynthia Lummis and Kirsten Gillibrand back in 2022. 

Since then, there has been ongoing work towards a September markup, incorporating extensive feedback from approximately 160 stakeholders.

Bipartisan Support Emerges 

The legislation aims to clarify the regulatory landscape for cryptocurrencies by delineating oversight responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). 

As reported by Bitcoinist, the bill asserts that crypto transactions involving the sale of digital commodities will not be classified as securities and the removal of income and wealth limits for retail buyers, which aims to open the market to a broader audience. 

Recently, a group of Senate Banking Republicans finalized a draft of the market structure bill, while the House had already passed its version, known as the CLARITY Act, in July.

While Congress previously enacted the GENIUS Act, which established new regulations for stablecoins tied to the dollar, the broader market structure bill remains a top priority for the crypto industry. 

Senator Kennedy described the GENIUS Act as merely a “baby step,” emphasizing that the market structure legislation represents a “full leap” that must be carefully considered.

Democrats have also echoed Kennedy’s concerns. In a sign of a bipartisan push, a group of twelve Democratic senators revealed key changes earlier this week that seek to address the challenges surrounding market structure and regulatory clarity. 

They have emphasized that achieving a new crypto framework would require time and collaboration with the Republican Party to remove all regulatory obstacles regarding digital assets. 

Despite the details yet to be worked out between the two parties, significant progress has been made in the regulatory space, as evidenced by rising prices and a bullish sentiment that has ignited a new wave of investments in the crypto space. The timeline for the passage of this bill remains to be seen.

Featured image from DALL-E, chart from TradingView.com