Senate crypto bill nears crunch time as amendments pile up, lobbying intensifies ahead of Senate Banking Committee hearing

The landmark legislation aimed at establishing a comprehensive regulatory framework for digital assets is approaching a pivotal moment on Capitol Hill. The bill, often referred to as the ‘Digital Asset Regulatory Certainty Act,’ is scheduled for a crucial markup session before the Senate Banking Committee next week, an event that will test the political will for definitive crypto regulation.

The impending committee review has triggered an intense flurry of activity among lawmakers and staff. Sources indicate that staff are reviewing dozens of proposed amendments (known as ‘Amends’) that aim to refine or overhaul key sections of the legislation. The primary points of contention revolve around the jurisdictional division between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), particularly concerning decentralized finance (DeFi) protocols and identifying which digital assets qualify as commodities versus securities. Further complexity has been added by amendments focusing on stablecoin regulation, specifically addressing capital reserve requirements and auditing standards to ensure financial stability.

Lobbying efforts have reached an apex as the deadline for formal proposals nears. Major cryptocurrency exchanges, blockchain development firms, and venture capital funds have significantly increased their spending and presence in Washington, advocating for clarity and innovation-friendly regulatory sandboxes. Concurrently, traditional banking groups and consumer watchdog organizations are pushing for stricter prudential standards, warning against potential systemic risk posed by inadequately regulated markets. Reports suggest high-level meetings between industry executives and key Senate Banking Committee members are occurring almost hourly, attempting to influence the final text of the bill before it faces a committee vote.

The outcome of the markup session will serve as the first major indication of the bill’s viability. While proponents remain optimistic about securing a majority vote to advance the legislation out of the committee, the sheer volume of competing amendments and the deeply divided opinions on enforcement and consumer protections mean the bill’s final structure—and its chances of passing the full Senate—remain highly uncertain.

Source: Senate crypto bill nears crunch time as amendments pile up, lobbying intensifies ahead of Senate Banking Committee hearing