Senate crypto bill nears ‘do-or-die’ moment as stablecoins and Trump issues threaten progress, essential votes
A crucial Senate crypto regulation bill faces a make-or-break moment next week due to unresolved disputes over stablecoin yield and Trump's conflicts of interest.Summary
The sweeping Senate bill aimed at regulating the cryptocurrency industry is approaching a critical juncture, described as a "do-or-die moment" within the next two weeks, as key issues remain unresolved ahead of essential votes in the Senate Banking Committee.
Major sticking points include how to regulate stablecoin yield, with Democrat Sen. Angela Alsobrooks proposing a compromise that restricts earning yield unless the customer takes actions like selling the stablecoin, contrasting with banking associations' concerns about losing deposits. Additionally, there is contention over including an ethics provision to address former President Donald Trump's significant crypto holdings and potential conflicts of interest, an issue where Republicans and Democrats have reportedly seen "backsliding."
Progress hinges on securing strong bipartisan support in the committee markup, as the bill will likely fail on the Senate floor without a significant number of Democratic votes needed to reach the 60-vote threshold. The timing is also influenced by the upcoming midterm elections, where the crypto industry's growing political influence through PAC funding and advocacy groups like Stand with Crypto will impact negotiating leverage.
(Source：The Block)