Industry representatives saw the crypto market structure the bill’s proposed dividend language on March 23 and 24. The internet – at least X (formerly Twitter) – was unhappy, but that might not matter much.
You’re reading State of Crypto, a CoinDesk newsletter that looks at the intersection of cryptocurrency and government. Click here to sign up for future editions.
The narrative
We* have new language outlining how the crypto market structure bill could address the stablecoin dividend.
*Only some people have seen the language, although it should be released for public consumption and reviewed next time.
Why it matters
Sen. Cynthia Lummis (R-Wyo.) said earlier this month that she expected a market structure bill — the hearing where lawmakers debate changes and language before voting on a bill — in the second half of April. Lawmakers have taken the first step toward this markup with an agreement on crypto market structure legislation.
To break it down
Crypto and banking industry representatives saw the proposed “agreement in principle” announced last week by Senators Angela Alsobrooks (D-Md.) and Thom Tillis (RN.C.) early this past week, with crypto representatives meeting with legislative staff on Monday and banking representatives meeting with staff on Tuesday.
No one seems particularly happy with the deal. The language has not yet been released publicly, although it should be released in the coming week. Concerns range from the possibility that the proposed language would encourage regulators to draft new rules around permitted activity to how it could limit stablecoin dividend balances.
The language is unlikely to see major revisions, although a person familiar said they expected there could be some minor changes. Many of the changes needed are just technical tweaks, they said.
Still, industry interests appear to be moving toward presenting some sort of counterproposal on the language. It remains to be seen how far it will go.
This week
- Congress is expected to be in its two-week Easter recess, although the ongoing battle over funding for the Department of Homeland Security could change things.
If you have thoughts or questions about what I’ll be discussing next week or any feedback you’d like to share, feel free to email me at [email protected] or find me on Bluesky @nikhileshde.bsky.social.
You can also join the group conversation on Telegram.
See you next week!
