Crypto Rules: Senate Takes Extra Time to Get It Right

The Senate Agriculture Committee has decided to postpone the review of a crucial crypto bill until late January. They want to make sure they have enough backing before moving forward. Chairman John Boozman mentioned that they've made good progress but need more time to finalize details and secure wide support. This bill is a big deal for the crypto world. It aims to clarify how the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) will regulate crypto markets. The Senate Agriculture Committee, which oversees the CFTC, initially planned to review the bill on Thursday, coinciding with the Senate Banking Committee's review. However, they've decided to take more time.The bill under discussion is different from the House's CLARITY Act, which passed in July. There are several changes being pushed for, including a ban on stablecoin yield payments and provisions for ethics laws. Some Democratic Senators want to add conflict-of-interest protections to prevent public officials from profiting off crypto connections. Bank lobbyists are advocating for a ban on third-party platforms offering stablecoin yields. On the other hand, crypto lobby groups want software developers and non-custodial platforms excluded from being classified as intermediaries, which would subject them to financial regulations. Investment bank TD Cowen predicts that the midterms might reduce the support needed to pass the bill, suggesting it's more likely to pass in 2027, with implementation in 2029. This delay shows that creating clear and fair crypto regulations is a complex process that requires careful consideration and broad agreement.