Cryptocurrency Legislation Progresses in Congress
Senator Cynthia Lummis, a pivotal player in efforts to advance the cryptocurrency industry’s key market structure bill, expressed optimism that recent discussions have paved the way for a potential compromise.
“I believe we have a mutual understanding,” Lummis said during the Digital Chamber’s DC Blockchain Summit. She, as the chair of the Senate Banking Committee’s digital assets subcommittee, indicated that the committee aims to take up the issue in April.
Lummis has been actively engaged in shaping the Digital Asset Market Transparency Act over the past few months. Initial discussions hit a snag due to objections from banking lobbyists, who argued that the yields from stablecoins posed a risk to traditional savings accounts. Much of the conversation has since focused on rewards programs that the crypto sector asserts are permissible under the National Innovation Guidance and Establishment for U.S. Stablecoins (GENIUS) Act, which was established last year.
The Wyoming Republican suggested that the final agreement would restrict crypto platforms from using language related to banking products when discussing rewards. “You won’t see any banking product terminology,” she stated, noting that, while she hasn’t reviewed the latest draft, Coinbase CEO Brian Armstrong has taken proactive steps on this matter.
Initially, Armstrong and his U.S. exchange had reservations about an earlier compromise that slowed down the bill’s progression, especially as they had been heavily investing in stablecoin reward programs.
Senator Bernie Moreno, the other Republican on the committee, mentioned in a video address that his colleagues, Democrat Angela Alsobrooks and Republican Thom Tillis, are finalizing negotiations about stablecoins, which also include input from the White House. Once consensus is reached, it’s “go time” for the bill.
Lummis also commented that previous disputes regarding security regulations in decentralized finance (DeFi) have been addressed. However, Democratic Senator Kirsten Gillibrand, a frequent collaborator with Lummis on crypto topics, raised another point: Democrats are insisting the legislation prohibit government officials from personally benefiting from the industry, a measure she believes is particularly aimed at former President Donald Trump.
“This is crucial to include,” she asserted, emphasizing that officials in Congress and the White House “should not profit from their position or knowledge,” and adding that these restrictions could garner more Democratic support for the bill.
Lummis suggested that a hearing on the legislation is anticipated after the Senate’s Easter recess, likely at the end of April. If the bill clears this stage, known as a markup, it would receive a second committee approval, having already passed through the Senate Agriculture Committee earlier this year. It could then be amended into a consolidated version and subsequently presented to the full Senate for a vote.
That said, the schedule in the Senate is unpredictable. Both parties have flagged potential legislative challenges over unrelated issues, including the situation in Iran, that might consume critical time in the near future. Additionally, the upcoming midterm legislative elections will shorten the Senate’s 2026 session.
“We’re going to get this finished by the end of the year, come what may,” Lummis remarked.
