Delay in U.S. Crypto Market Structure Legislation, Senate Banking Committee Unlikely to Review in April

On April 21, The Block reported that Thom Tillis, a key negotiating representative from the Senate Banking Committee and a Republican senator from North Carolina, stated that the committee is not expected to schedule hearings for revisions and votes on the crypto market structure bill in April. The main disagreement in the current legislation centers around the treatment of stablecoin rewards; the existing draft proposes to prohibit rewards for idle stablecoin accounts while allowing profits from trading activities. Banking representatives are concerned that such profits could attract deposits away from traditional banks, while crypto firms argue that restricting rewards would hinder innovation. Tillis suggested postponing the committee’s review until May. Previously, Senator Bernie Moreno warned that if the bill does not pass by May, ‘digital asset legislation will not advance in the foreseeable future.’