"Pass even if all Democrats oppose?"...U.S. cryptocurrency market structure bill crosses Senate threshold

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As the U.S. cryptocurrency market structure bill secured enough votes to pass the Senate Banking Committee, a direct clash between Republicans and Democrats over the leadership of cryptocurrency regulation has begun in earnest.

CoinGape reported on May 13 (local time) that Republicans on the Senate Banking Committee had secured enough votes to pass the U.S. cryptocurrency market structure bill at the committee stage. Previously, Senator John Kennedy, whose stance on supporting the bill was unclear, announced that he would vote in favor during the markup, creating a scenario where the bill could pass the committee even if all Democrats oppose it.

The Senate Banking Committee has a Republican majority. Senator Tim Scott, Chairman of the Senate Banking Committee, had previously stated that he would not proceed with the bill's markup until he had secured the support of all Republicans. Kennedy stated that while he would review Democratic amendments, ethical provisions would not be included before the bill passed the committee. He explained that he believes Scott does not have the jurisdiction to include such provisions in the bill.

Members of the Senate Banking Committee submitted several amendments ahead of the markup. Anti-cryptocurrency Senator Elizabeth Warren submitted more than 40 amendments. Warren also proposed preventing the Federal Reserve (Fed) from issuing master accounts to cryptocurrency companies, including Ripple. The Fed has already proposed a limited master account system that can be issued to cryptocurrency companies.

However, bipartisan support remains a key variable for the bill to reach the Senate floor after passing the committee. Alex Thorn, Head of Research at Galaxy, believes that if some Democrats vote in favor during the markup stage, the chances of passing the plenary session increase. Thorn mentioned five Democratic senators who could support the bill, explaining that if all five support it, the likelihood of final passage could increase.

Democrats are signaling that they will not support the U.S. cryptocurrency market structure bill without ethical provisions. Senator Angela Alsobrooks was mentioned as playing a key role in negotiating the stablecoin yield language between the banking and cryptocurrency industries. Republican Senators Cynthia Lummis, Thom Tillis, and Bernie Moreno met with Democratic Senators Adam Schiff and Kirsten Gillibrand the previous day to discuss resolving the ethical provisions conflict. These discussions are expected to continue until the markup.

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