Crypto Rules Hit a Snag: What's Next?

The U. S. Senate's plan to create clear rules for cryptocurrency has hit a bump in the road. The delay is not just about timing but also about disagreements and shifting priorities. The Senate Banking Committee has put the brakes on its big crypto bill. This bill was supposed to be a major step in regulating cryptocurrency. But now, it's on hold, and the focus has shifted to housing issues. The delay started when Coinbase, a major crypto exchange, pulled its support for the bill. This happened just before a key meeting where lawmakers were going to discuss and possibly vote on the bill. Without Coinbase's backing, the committee decided to focus on other things. Industry experts say the delay could last until late February or March. Lawmakers are trying to find common ground, but it's not easy in a divided Senate. There are several reasons for the slowdown. Coinbase's withdrawal showed that there are big disagreements between crypto companies and the people writing the bill. One major issue is stablecoin rewards, which some see as crucial for crypto innovation.At the same time, traditional banks are pushing for stricter rules on crypto products. They argue that these products could take deposits away from banks and cause problems in the lending market. This lobbying effort has made the bill's language stricter and has increased opposition from the crypto industry. Political priorities are also playing a role. With midterm elections coming up, senators are focusing on issues that matter to voters, like housing affordability. This has slowed down the progress of the crypto bill. Some lawmakers say the delay is temporary and that strong crypto rules are still possible. However, the interruption shows how fragile the consensus on digital assets is. Meanwhile, the Senate Agriculture Committee has released its own draft of a market structure bill. But industry observers say it might not have the bipartisan support needed to pass.