Senate Banking Committee Delays Crypto Market Structure Bill Due to Housing Priorities
TLDR
- Senate Banking Committee shifts focus to housing issues, delaying the crypto market structure bill.
- President Trump’s executive order targets institutional investors buying single-family homes.
- Coinbase withdraws support for the crypto bill due to concerns over stablecoin yield restrictions.
- Senate Agriculture Committee releases its version of the market structure bill ahead of the Jan. 27 hearing.
- The two committee versions must be merged for a Senate vote, requiring bipartisan support.
The U.S. crypto market structure bill will likely face several weeks of delay. Key members of the Senate Banking Committee are shifting their attention to housing-related legislation. This shift comes after President Trump’s recent executive order to limit institutional investors from buying single-family homes.
Crypto Bill Delayed Due to Housing Focus
Lawmakers in the Senate Banking Committee are prioritizing housing legislation over the crypto market structure bill. This move follows President Trump’s executive order aimed at restricting large institutional investors from purchasing single-family homes.
The executive order aims to protect individual homebuyers from competition by institutional investors, which has become a growing issue across the U.S. housing market. The rising concerns around housing affordability, partly driven by institutional purchases, have fueled political pressures.
The delay in the crypto bill’s timeline could push it into late February or even March. Due to this shift, the committee postponed its crucial markup hearing, which was originally scheduled to review the bill’s text. Despite the delay, the crypto bill is not being abandoned but rather placed on the backburner as lawmakers focus on immediate housing concerns.
Coinbase Withdraws Support for the Bill
Coinbase, a major player in the crypto industry, has withdrawn its support for the market structure bill. CEO Brian Armstrong cited concerns over the bill’s restrictions on stablecoin yield, which he believes favors traditional banks over crypto firms.
Stablecoin regulation has been a central point of contention, with many crypto companies arguing that the bill could stifle growth in the digital asset sector. Despite these concerns, the delay offers additional time for crypto stakeholders to address their issues with the proposed legislation.
This move by Coinbase, which has been a donor to the Trump administration, highlights the divisions within the crypto industry. Some companies are pushing for changes to the bill’s provisions, while others support the current draft. The delay could provide an opportunity to modify the legislation before it gains traction in the Senate.
Senate Agriculture Committee Releases Its Version
Meanwhile, the Senate Agriculture Committee has released its own version of the market structure bill. The committee plans to hold its markup hearing on January 27. However, committee members have acknowledged that they have yet to reach an agreement on key policy issues.
Chairman Sen. John Boozman emphasized the ongoing disagreements within the committee regarding fundamental aspects of the bill. The committee’s draft is expected to undergo further revisions before being merged with the Senate Banking Committee’s version.
Once the two versions are reconciled, the final bill will need to pass a 60-vote threshold in the Senate. This requires full Republican support along with backing from some Democrats.
The post Senate Banking Committee Delays Crypto Market Structure Bill Due to Housing Priorities appeared first on Blockonomi.
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