Efforts to advance long awaited crypto market structure legislation in the United States Senate have encountered another delay, with lawmakers signaling that a key committee vote is unlikely to take place in April. Senator Thom Tillis of North Carolina, a central negotiator on the Senate Banking Committee, told reporters that the panel is now expected to consider amendments and voting on the bill in May instead.
Tillis, along with Senator Angela Alsobrooks of Maryland, has been working to resolve one of the primary sticking points in the legislation — the treatment of stablecoin rewards. The issue follows earlier provisions introduced under the GENIUS stablecoin framework, which prohibits issuers from directly paying interest to holders but does not block third-party platforms from offering rewards.
Banking groups have raised concerns that allowing rewards through outside platforms could pull deposits away from traditional financial institutions, especially community banks. In contrast, digital asset companies argue that restricting such incentives would limit technological progress and weaken innovation within the sector.
Growing Industry Pressure to Finalize Digital Asset Framework
Momentum to finalize the bill has increased as industry leaders push lawmakers to move forward. Cody Carbone, chief executive of The Digital Chamber, recently urged Senate Banking Committee leaders to advance the digital asset market structure legislation to the markup stage as soon as possible. His appeal emphasized that regulatory clarity is needed for the more than 70 million Americans involved in digital assets.
The proposed legislation aims to define whether cryptocurrencies should be regulated as securities or commodities, clarify oversight responsibilities between federal agencies, and introduce disclosure standards for digital asset firms. Lawmakers have warned that if the bill fails to advance by May, the chances of passing comprehensive crypto legislation in the near future could significantly diminish.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.