A crypto key law in the United States reaches a new milestone after months of waiting

An important American law on cryptocurrency regulation seems to be moving forward.

The Senate Banking Committee is planning a crucial hearing after a new compromise.

Context: Progress in American cryptocurrency regulation.

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In brief

• The US Senate plans a hearing on May 14 on the Digital Asset Market Clarity Act
• A compromise on stablecoin rewards unlocks the situation, frozen since January
• The law enhances the powers of the Commodity Futures Trading Commission, but faces criticism

Hearing after a breakthrough

The Senate Banking Committee has scheduled a “markup hearing” for the Digital Asset Market Clarity Act.

This legislative process step will take place on Thursday, May 14.

The bill, which aims to grant more powers to the Commodity Futures Trading Commission (CFTC), had been stalled since January.

Disagreements on topics like stablecoin yields had hampered discussions.

A recent compromise by Senators Thom Tillis and Angela Alsobrooks has reignited the process.

Context: Struggles with stablecoins and small tokens.

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Disagreements around stablecoins and small tokens

The new compromise prohibits companies from offering interest on static reserves backing stablecoins.

Rewards linked to other uses of stablecoins, however, remain permissible.

Several banking organizations stated in a letter that “additional work is needed to achieve a text that promotes innovation while protecting consumers.”

Previously, Coinbase had withdrawn its support for the project.

CEO Brian Armstrong stated that the company could not support the law “in its current state” due to concerns about stablecoin rules and “tokenized equities.”

Crypto platforms also lobbied to remove a provision limiting trading to assets that are “difficult to manipulate,” as it would complicate offering smaller tokens.

Ethical stakes and next steps

Senator Kirsten Gillibrand wants to include an ethical clause in the law.

She aims to prevent high-ranking public officials from benefiting from the crypto industry they regulate.

According to a poll, 73% of American voters support this stance.

After the hearing, the Senate will need to merge this version with a previous version from the Agriculture committee.

The text can then be submitted for a vote by the entire Senate.

A White House advisor hopes for adoption by the House of Representatives before July 4, after a Senate vote scheduled for June.