Crypto Market Structure Bill Could Face Years of Delays, Says Paradigm

TLDR

• Paradigm’s Justin Slaughter warns that the crypto market structure bill could take years to fully implement.
• The bill requires 45 rulemakings, which could extend the implementation process beyond two presidential terms.
• Slaughter compares the crypto bill’s process to the Dodd-Frank Act, which took years to finalize most of its regulations.
• The Senate Banking Committee will hold a markup of the bill later this week, signaling important progress.
• Regulatory bodies must collaborate to publish proposed regulations, gather public feedback, and finalize rules for the bill.

A senior regulatory executive from Paradigm, a leading cryptocurrency investment firm, has raised concerns about the lengthy implementation of the U.S. crypto market structure bill. Known as the CLARITY Act, the bill aims to establish a clear regulatory framework for the crypto industry. However, according to Justin Slaughter, Paradigm’s Vice President of Regulatory Affairs, the process could extend well beyond the bill’s potential passage into law.

Regulatory Process Could Span Two Presidential Terms

Slaughter stressed that even if the crypto market structure bill passes through Congress and is signed into law, the regulatory process will likely take years. He pointed out that 45 rulemakings are required for the bill to take full effect. Slaughter indicated that the process of rulemaking could stretch across two presidential terms.

He referred to his experience with the Dodd-Frank Act, which took several years for its regulations to be fully implemented. Slaughter remarked, “Most of the rules that aren’t from the CFTC were finalized between 2013 and 2018, which was 3 to 8 years after the act was passed.” This example, he said, shows the complex nature of turning legislation into actionable regulations.

Crypto Market Bill Faces Challenges Ahead

The Senate Banking Committee will hold a markup of the crypto market structure bill later this week. The bill has already garnered strong support across both political parties. However, sources familiar with the situation said the process still faces challenges, even after approval from Congress.

The markup is a significant step, but it is far from the final one. It marks just one of the many stages that the bill must go through before it can be signed into law. While the bill has gained considerable momentum, the rulemaking process is expected to take considerable time before it becomes fully effective.

Regulatory Collaboration Key for Effective Rulemaking

For the bill’s provisions to be enacted, various regulatory bodies must collaborate to create and implement the necessary rules. These agencies will need to publish proposed regulations and collect public feedback before finalizing them. The time required to complete these steps can vary, depending on the complexity of the regulations.

Slaughter highlighted that this collaboration will be essential for the successful implementation of the bill. He also mentioned that the delays in finalizing rules after major pieces of legislation, such as Dodd-Frank, demonstrate the challenges in regulating complex industries like crypto.

The post Crypto Market Structure Bill Could Face Years of Delays, Says Paradigm appeared first on CoinCentral.