Over 100 industry organizations have pressed the Senate to move forward with a markup of the crypto market structure bill to “future-proof” the industry and “cement” US leadership in financial innovation.
Crypto Groups Push Senate For Markup Date
On Thursday, the Crypto Council for Innovation (CCI) and the Blockchain Association (BA), joined by a coalition of more than 120 organizations from across the ecosystem, urged the Senate to fast-track the crypto market structure bill, also known as the CLARITY Act.
In a letter addressed to Senators Tim Scott, Cynthia Lummis, Elizabeth Warren, and Ruben Gallego, the crypto groups asked the Senate Banking Committee to notice and set a markup date for the CLARITY Act to “provide a comprehensive federal market structure framework for digital assets.”
The coalition highlighted the Committee leadership’s commitment to serve the needs of Americans, but noted that this is a “critical moment” for US leadership in digital finance and policy.
As they explained, a well-designed market structure regime is fundamental to clarifying the roles and responsibilities of market participants, ensuring robust consumer protections, and preserving US leadership in financial innovation.
They argued that “timely action is critical,” as the absence of a comprehensive framework risks giving economic and strategic advantages to other major jurisdictions that have already implemented comparable policies.
The letter also applauded actions by the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) to bring clarity to digital asset market participants.
However, they stressed that “agency action alone is not a durable solution,” arguing that the US “cannot risk a return to the previous era of regulation by enforcement, which perpetuated uncertainty for both builders and market participants.”
“Our industry recognizes the importance of this moment. (…) The U.S. has long been the global leader in financial markets due to its commitment to clear rules, strong institutions, and openness to innovation. With thoughtful market structure legislation, Congress has the opportunity to extend that leadership into the next generation of financial technology. For these reasons, we strongly encourage the Committee to swiftly move forward with a markup of digital asset market structure legislation as soon as practicable,” the letter read.
CLARITY Act Risks Mid-May Delay
The crypto industry’s letter comes as news of a potential delay in the CLARITY Act’s markup emerges. As reported by Bitcoinist, the Committee has until this Friday to formally notice a markup if it intends to hold a vote on the CLARITY Act next week.
Nonetheless, pressure from the banking sector may push the long-awaited markup session, initially expected for late April, to the second week of May, when lawmakers return from recess.
According to the reports, Senator Thom Tillis’ office has faced a “targeted pressure campaign” from banking groups, which are reportedly unhappy with the stablecoin yield restrictions included in the current version of the act.
For context, the crypto and banking industries have been fighting over the potential prohibition of yield and rewards on stablecoin balances. This dispute has stalled the bill for over three months.
In late March, lawmakers shared a revised draft with the two parties to address the long-standing dispute. The latest language reportedly prohibited platforms from offering yield, directly or indirectly, for holding a stablecoin, or in a manner that resembles a bank deposit.
The draft also limits workarounds and prohibits any activity “economically or functionally equivalent” to interest. Despite the fears of a longer delay, a mid-May markup remains within the timeline multiple lawmakers and crypto industry figures have mentioned.
Paradigm’s Vice President of Regulatory Affairs, Justin Slaughter, stated that the pressure won’t start until after Memorial Day. Similarly, Ripple CEO Brad Garlinghouse has deemed May the most critical month for the bill before lawmakers shift attention toward the midterm campaign season.
