Senator Moreno Warns Crypto Legislation Must Clear By May Or Face Endless Postponement

TLDR

• Senator Moreno says digital asset legislation will stall if not passed by May.
• Senate Banking Committee to mark up the Clarity Act in April.
• Stablecoin yield disputes continue to challenge crypto bill progress.
• Zero Democrats voted for the Agriculture portion of the Clarity Act.
• Congress recess starts May 21, limiting time to pass crypto legislation.

Senator Bernie Moreno warned that U.S. digital asset legislation faces a critical deadline. The Clarity Act, a key crypto market bill, must pass by May or risk indefinite delay. With disputes over stablecoin yields, DeFi, and partisan disagreements, the Senate has just weeks to secure approval before recess.

Moreno Warns Crypto Bill Must Pass by May or Face Delay

Senator Bernie Moreno warned that the Clarity Act, the U.S. crypto market structure bill, must pass by May. Moreno said if the bill fails, digital asset legislation will stall for the foreseeable future.

The Clarity Act aims to formally legalize most crypto activity in the United States, including initial crypto token sales to residents. Its passage would prevent future administrations from restricting crypto activity without reversing the law.

Senator Cynthia Lummis, the bill’s main sponsor, said the Senate Banking Committee will mark up the bill in the second half of April. She expressed optimism about completing committee work and moving the legislation forward.

Limited Window for Passage

The Senate will be in session for only two weeks in late April, specifically the weeks of April 13 and April 20. If the Banking Committee passes the bill, it must then merge with the Agriculture Committee’s version from January.

Senator Moreno emphasized that after May, passing a crypto bill will likely be impossible due to the Memorial Day recess starting May 21. This leaves only three weeks to secure floor time, gain bipartisan support, and pass multiple essential votes.

Senator Kirsten Gillibrand, a pro-crypto Democrat, said the Agriculture portion of the bill needs substantial rewriting to gain bipartisan approval. She stressed that Republicans must compromise on key issues to advance the legislation.

Stablecoin Yield and DeFi Concerns

A major issue delaying the bill is stablecoin yield, which offers returns to holders of dollar-pegged crypto tokens. Banking lobbyists say this could reduce banks’ ability to compete for consumer deposits.

Senate Banking Chair Tim Scott said he expects a compromise on stablecoin yield language soon. Lummis also expressed hope that recent negotiations between crypto firms, banks, and the White House will help resolve the issue.

Another hurdle is decentralized finance, or DeFi. Some industry stakeholders may oppose the bill if Democrats require removing carve outs for DeFi platforms. Democrats also raised national security concerns and ethical standards regarding crypto activities of senior officials.

Ethics and Trump-Related Issues

Several Senate Democrats have raised concerns about the Trump family’s crypto ventures, including a stablecoin business. Some insist the bill must restrict such activities. The White House has stated these restrictions are unlikely to be included.

Senator Gillibrand said, “It is essential that members of Congress and senior administration officials do not promote or sell cryptocurrencies.” She added that failure to include ethics measures could reduce public trust in the legislation.

Despite the challenges, sponsors remain hopeful the Clarity Act could pass if both parties compromise in April and May. Senator Moreno’s warning underscores the narrow timeframe for congressional action.

The post Senator Moreno Warns Crypto Legislation Must Clear By May Or Face Endless Postponement appeared first on CoinCentral.