Crypto Market Structure Bill Stalls, May 25 Deadline Looms

BlockBeats News, April 27th, the Crypto Market Structure Act has seen almost no public-facing progress in the past month. Although it is difficult to predict the outcome of the bill, the window for its passage is narrowing. Many actions have been taken regarding the market structure issue, such as the statement from the U.S. Securities and Exchange Commission (SEC) staff, which is not permanent guidance. The SEC has time to issue rules that require public notice and a comment period, but this will take time. The market structure legislation aims to codify the goals of the crypto industry and regulatory rules into law, making it more difficult for future administrations to overturn these rules. In other words, without the "Clarity Act," we could still be having the same discussion years from now.

At least since December of last year, May 25th, Memorial Day, has been seen as the "deadline" for legislative progress. After entering the summer, lawmakers will leave Washington to campaign, leaving little time for crypto bills (or most other legislation). Before Congress adjourns, the House still needs to consider a bill to fund the Department of Homeland Security, and the Senate must decide whether Kevin Warsh will be the next Federal Reserve Chair.

The crypto industry is eager for this bill to pass. Over 100 institutions signed a joint public letter last week urging the Senate Banking Committee to hold a markup hearing, which would be the first step in the overall approval process. However, it is currently unclear how far the committee is from advancing. The stablecoin yield issue still dominates the discussion, and other unresolved issues have not been addressed at least in public. Even after these issues are resolved, the House will need to vote on the bill again. French Hill, chairman of the House Financial Services Committee, stated earlier this month that many unresolved issues surrounding stablecoins and DeFi sales practices have been addressed in the House version of the bill, and the Senate should be able to find consensus.