US Senator Cynthia Lummis expects the long-awaited crypto market bill to pass the Senate committee in April. “We’re almost done,” the chairman of the digital assets subcommittee said Wednesday at the DC Blockchain Summit.
Compromise on stablecoin rewards reached
Negotiations on the Digital Asset Market Clarity Act dragged on for months. The biggest stumbling block: are crypto platforms allowed to offer returns on stablecoins, and if so, how? Banks feared that such rewards would draw customers away from traditional savings accounts and previously managed to significantly delay the legislative process.
The compromise that is now on the table takes a pragmatic approach. Crypto platforms are allowed to offer rewards, but not with terminology that resembles banking products. Terms such as “interest” or “deposit” are prohibited. Rewards should also not be directly linked to the amount of assets a user holds.
According to Lummis, Coinbase CEO Brian Armstrong was willing to make concessions on this issue after previously strongly opposing a similar proposal. Senator Bernie Moreno said that Democrat Angela Alsobrooks and Republican Thom Tillis are in the final stages of stablecoin negotiations. The White House is also involved in the talks.
Democrats demand ban on crypto profits for politicians
Previous disagreements over the regulation of decentralized finance have now been resolved, Lummis said. However, there is still one sensitive point on the table that could determine progress.
Democratic Senator Kirsten Gillibrand, a key partner of Lummis on crypto legislation, wants the bill to draw a clear line. Politicians should not benefit financially from the crypto industry. The measure seems mainly aimed at President Donald Trump.
According to Gillibrand, this addition is crucial to gain broader support within her party. She emphasized that no politician in Congress or the White House should “get rich through his position and knowledge.”
Tight timetable with many uncertainties
Lummis is aiming for a hearing after the Senate’s Easter recess at the end of April. If the bill passes this so-called markup, it will mark its second major approval at the committee level. The Senate Committee on Agriculture previously gave the green light for its own version.
Afterwards, both proposals must be combined into one final bill that the full Senate can vote on. But the timeline is under pressure.
Both Democrats and Republicans are threatening political delays on other files. Geopolitical tensions, such as the conflict with Iran, can also eat up valuable speaking time. In addition, the legislative agenda in 2026 will be shorter due to the mid-term elections.
Yet Lummis remains convinced. According to her, the law will be pushed through before the end of the year anyway.
Source: https://newsbit.nl/senator-lummis-over-cryptowet-we-zijn-er-dit-keer-echt-bijna/
