Cryptocurrency Market Structure Bill Postponed Again..."Stopped Until Second Week of May"

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The Senate deliberation of the U.S. cryptocurrency market structure bill (CLARITY) has been stalled by issues related to stablecoin dividends, making it increasingly likely to be postponed until after May.

On April 25 (local time), CoinGape, a cryptocurrency specialized media outlet, reported that the schedule for the Senate Banking Committee's deliberation on the U.S. cryptocurrency market structure bill has become uncertain due to its overlap with the vote for the next Federal Reserve chairman nominee and the congressional recess. Reporter Eleanor Terrett analyzed that the official notification deadline would effectively be Monday, as the anticipated announcement for the bill's deliberation did not materialize. The Senate is scheduled to enter a 7-day recess starting next week, so if the deliberation is not decided this week, the schedule will naturally be pushed back to May.

One of the key reasons for the deliberation delay is the difficulty in negotiations with the banking sector regarding stablecoin dividends. Senator Thom Tillis, a member of the Senate Banking Committee, requested more time to address banks' concerns about stablecoin yields. Currently, the banking sector is strongly opposing stablecoin yields, arguing that the returns provided by stablecoins could undermine the competitiveness of traditional financial products. As the relevant draft has not yet been released, it is also difficult to establish the overall outline of the bill.

The Senate Banking Committee's focus on the confirmation vote for Kevin Warsh, the Federal Reserve chairman nominee, scheduled for April 29, also played a role. With a significant personnel decision taking precedence over bill deliberation, the cryptocurrency legislative process appears to have been sidelined. Industry insiders predict that all indications point to the deliberation schedule being delayed until after the second week of May, making a slowdown in the legislative pace unavoidable.

Within the cryptocurrency market, there are also criticisms of this legislative deadlock. Charles Hoskinson, the founder of Cardano (ADA), pointed out during a live broadcast that the Democratic Party's anti-cryptocurrency stance is becoming a huge barrier to the bill's passage. Hoskinson expressed concern that an election season without regulatory clarity could cause greater market turmoil. The analysis suggests that political differences are weakening legislative momentum.

On the other hand, some political figures, such as Representative Bernie Moreno, are urging swift action on the bill and maintaining an optimistic outlook. Representative Moreno argued that the banking sector's concerns about stablecoin yields are exaggerated and that a final draft should be finalized quickly. As policymakers struggle to find common ground between decentralized finance and stablecoin compensation systems, the market is now keenly awaiting the Senate's decision in May.

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