Challenges In Stablecoin Law Stalls Senate’s Progress On New Crypto Bill – Report

According to a recent report by Roll Call, US Senator Cynthia Lummis, a digital asset advocate in Congress, is delaying the upcoming cryptocurrency market structure bill as a senator. Reluctant to reconsider a provision of the recently passed GENIUS Act, which prohibits stablecoin issuers from making interest payments.

Lawmakers are divided over interest provisions on cryptocurrencies

Senator Loomis is He said To resist pressure from both Republicans and Democrats to change the interest language in the stablecoin bill. The banking industry argues that this ruling creates a loophole that allows cryptocurrency exchanges to offer rewards, effectively enabling them to pay interest.

Loomis shared her view with reporters, saying: “I am of the opinion that we should leave the stablecoin bill alone. We have enough problems with the market structure.” In response, the cryptocurrency industry launched a campaign to maintain the current stablecoin rewards policy.

Opponents of interest in cryptocurrencies advocate addressing the issue of rewards in the new version Market structure legislation Currently in development. This draft law aims to establish rules for the operation and supervision of digital asset markets.

Sen. Bill Hagerty, a Republican from Tennessee and sponsor of the stablecoin bill, acknowledged the complexity surrounding interest in cryptocurrencies, saying: “This is something that is going to take a lot of attention from my colleagues to address. It’s all up in the air.”

Cryptocurrency and banking lobbyists clash

Last month, Senate banking Republicans updated a draft of a market structure bill, which Chairman Tim Scott had hoped to introduce by the end of September.

However, this deadline was missed due to various obstacles, including conflict between banks and the banking sector Encryption lobbies Regarding interest on stablecoins and the bill’s approach to decentralized finance (DeFi).

A group of Senate Democrats supporting cryptocurrencies recently proposed amendments to the bill, which were rejected by Republicans and the cryptocurrency industry. These Democrats want the legislation to support the intent to ban interest or yield paid by stablecoin issuers, either directly or indirectly through affiliates.

President Scott appears to be prioritizing Democratic concerns over Republican concerns Crypto exchange rewards. He delayed marking up the bill to allow Democrats more time to grapple with the legislative text, his spokesman Jeff Naft noted.

Lawmakers are hesitant to predict when the commission might reach consensus on coding. “We’re trying to get a coding appointment,” Loomis noted. When asked about a possible date for this, she replied: “When can we agree on a price mark-up date.”

What further complicates the draft law is the looming partial government shutdown. Democrats have indicated they would prefer to finalize the basic text of the bill before proceeding with markup.

More than 320,000 letters were sent to Senate offices

Cryptocurrency advocates are pushing for quick action on market structure legislation this year. Mason Lynaugh, Community Manager for Stand with Crypto, said:

The Senate must act quickly and deliberately to pass market structure legislation. Congress has the opportunity to position America as a global leader in the cryptocurrency industry, something that can only be achieved through effective market structure legislation.

The group reported that more than 320,000 letters from more than 160,000 participants were sent to Senate offices in recent weeks, urging lawmakers to reject a new anti-consumer initiative from the Senate. Banking industry It aims to eliminate stablecoin rewards.

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