Crypto Legislation Faces Hurdles as Senate and House Clash
The Senate is aiming to finalize crypto rules by September 30. However, the House is lagging, which could delay the process.
At a recent press event, Senator Tim Scott set a new deadline for crypto market structure legislation. He believes this timeline is achievable, even if it extends past President Trump’s August goal. Scott, alongside Senator Cynthia Lummis and Bo hines, expressed optimism. Yet, the House is not on the same page. Financial Services Chair french Hill has not committed to the same schedule, hinting at potential complications.
Senator Scott’s September target shows Senate unity. The GENIUS Act, passed with bipartisan backing, includes provisions like Federal Reserve-backed reserve requirements and restrictions on tech giants issuing tokens. But the House is silent, with Chair French Hill not confirming their commitment. This gap between the Senate and House could disrupt Washington’s crypto consensus.
While the Senate moves swiftly, the House remains quite. The GENIUS Act, backed by the Senate, aims to regulate stablecoins and tech giants. The House, however, prefers its Clarity Act, which supports state-level oversight and foreign issuers.This divide could stall progress.
Key differences exist. The GENIUS Act seeks federal oversight, while the Clarity Act favors state-level control. These discrepancies reflect a broader debate: should crypto fall under federal or state jurisdiction?
Political pressures add complexity. President Trump’s August deadline adds urgency. Yet, procedural hurdles remain. The Senate’s approach contrasts with the House’s Clarity Act, which allows more flexibility for foreign issuers. This clash could delay implementation. The Senate’s bill restricts tech companies from issuing tokens. The House’s version offers a decentralized approach. These discrepancies reflect a philosophical debate over centralization versus decentralization.
- Senate’s GENIUS Act restricts tech firms from issuing tokens.
- House’s Clarity Act supports state regulators and foreign entities.
These disagreements could push decisions into late fall. The EU’s MiCA framework is advancing,while U.S. markets risk falling behind.The EU’s MiCA framework is already reshaping global stablecoin flows. Asia’s crypto hubs are capitalizing on U.S. indecision. The EU’s MiCA framework is gaining traction, leaving U.S.markets at a disadvantage.
