The contentious crypto market structure bill has been delayed for weeks following a failure to come to an agreement with US policymakers.
The American crypto market structure bill, or CLARITY Act, faces delays of several weeks to months as the Senate Banking Committee shifts focus to housing legislation aligned with President Trump’s affordability agenda, reported Bloomberg on Thursday.
The Committee is likely to postpone further consideration of the crypto regulations, which were already delayed last week, until late February or March, stated the report, citing anonymous sources. The controversial crypto bill was originally postponed last week after Coinbase withdrew support over stablecoin yields.
“Not a great sign for the Senate Banking Committee, which was likely hoping for a bipartisan deal to smooth its own markup,” commented Crypto America host Eleanor Terrett.
No Agreement On Crypto Bill
The crypto legislation aims to establish clearer regulatory boundaries between the SEC and CFTC over digital assets. However, ranking Democrats and banking lobby groups have pushed for changes to the legislation preventing stablecoin issuers from offering yields over fears of a deposit flight.
The US national average savings account yield is a paltry 0.61%, according to Bankrate, whereas savers can earn as much as 5% by holding USD stablecoins. Low interest rates are great for banks’ profit margins, but terrible for savers who end up losing in the long run due to inflation.
In reaction to the delayed crypto bill, Republican Senator John Boozman released an updated bill that builds on the delayed bipartisan market structure legislation. Meanwhile, Donald Trump has announced a potential deal on the Greenland issue.
On Wednesday, Trump met with NATO Secretary-General Mark Rutte and stated that they have “formed the framework of a future deal with respect to Greenland.”
As a result, he will not be imposing the tariffs he threatened on European allies who were against his push to control the territory.
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Crypto Market Reaction
There was a minor reaction on crypto markets with total capitalization inching up to $3.1 trillion, but no major moves.
Bitcoin recovered from an intraday slump to $87,300 following the regulations news to tap $90,000 in early trading in Asia on Thursday. However, it had retreated to $89,800 at the time of writing.
Meanwhile, Ether prices had reclaimed $3,000 and were holding above it. There were slightly better gains for XRP, Monero, and Canton.
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