The chairman of the US Senate Banking Committee, Senator Tim Scott, said he expects to bring the cryptocurrency market structure bill to a vote next month, paving the way for President Donald Trump to sign it into law early next year.
“We hope by the end of the year, next month, to be able to complete the XEM and vote in both committees, and then send the bill to the Senate for President Trump to sign,” Scott said in an interview Tuesday on Fox Business’ Mornings with Maria.
The Cryptocurrency Market Structure Bill requires approval from both the Senate Banking and Agriculture Committees, as it involves both securities and commodities regulations. According to Scott, the bill's goal is to protect consumers while strengthening America's position as the world's strongest economy in the next century.
Scott had previously pushed for the bill in September, but it failed due to opposition from Democrats. “Democrats kept stalling because they didn’t want President Trump to turn America into the cryptocurrency capital of the world,” Scott added. “This bill isn’t just for President Trump, it’s for all Americans.”
The Senate is currently working on its own cryptocurrency market structure bill after the House passed its version — the CLARITY Act — this past summer. The Republican-led Banking Committee wants to clarify the jurisdiction of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) and define a new concept called “ancillary assets” to determine which cryptocurrencies are not securities. For the bill to move forward, Republicans need support from Democrats.
Amid ongoing bipartisan discussions, a proposal from a group of Democratic lawmakers has leaked. The six-page proposal focuses on decentralized finance (DeFi), requiring the Treasury Department and other regulators to determine when an entity or individual “exercises significant control or influence.” The draft has been met with strong backlash from the crypto community, with many experts saying that if implemented, it would virtually ban DeFi.
