Delay in U.S. Crypto Market Structure Legislation; Senate Banking Committee Unlikely to Review in April

On April 21, The Block reported that Thom Tillis, a key negotiating representative from the Senate Banking Committee and a Republican senator from North Carolina, stated that the committee is not expected to schedule hearings for revisions and votes on the crypto market structure bill in April. The main points of contention in the legislation revolve around the treatment of rewards for stablecoins. The current draft proposes to prohibit rewards for idle stablecoin accounts while allowing earnings from trading activities. Banking representatives are concerned that such earnings could lead to deposit outflows from traditional banks, while crypto firms argue that limiting rewards would hinder innovation. Tillis suggested postponing the committee’s review until May. Previously, Senator Bernie Moreno warned that if the bill does not pass before May, “digital asset legislation will not advance in the foreseeable future.”