‘Shifted the vibes:’ Stablecoin deal revives crypto bill despite lingering ethics disputes

A recent compromise on stablecoin rewards has significantly improved the chances of a comprehensive cryptocurrency bill advancing in the U.S. Senate, according to industry observers. Kristin Smith of the Solana Policy Institute estimates the odds of the bill becoming law have risen to around 60% from a previous 20-30%. The bill aims to federally regulate digital assets for the first time, dividing jurisdiction between the SEC and CFTC, with increased authority for the latter.

Despite this progress, several challenges persist. Tensions have emerged as some crypto exchanges push for more lenient treatment of risky assets, drawing criticism from consumer advocacy groups. Furthermore, a significant hurdle remains in the form of ethics provisions, particularly concerning President Donald Trump's digital asset ventures. Democrats have insisted on an ethics clause to prevent officials from engaging in certain digital asset transactions, while some Senate Republicans argue it falls outside the committee's jurisdiction. Other unresolved issues include provisions related to decentralized finance and the Blockchain Regulatory Certainty Act, as well as concerns about the CFTC's resources to handle increased regulatory oversight. The upcoming midterm elections and potential legislative disagreements between the House and Senate also add complexity to the bill's path forward.

(Source：The Block)