US Crypto Regulation Bill Hits Snag in Senate as Opposition Mounts

The Digital Asset Market Clarity Act is a long-awaited bill that aims to regulate the cryptocurrency industry in the US for the first time. The bill has been passed by the House but faces significant opposition in the Senate, where it needs 60 votes to advance.

The bill would establish clear regulations for the crypto sector and split oversight between the SEC and CFTC. However, opponents argue that the CFTC's greater control could lead to lax regulation. The bill also includes an ethics clause intended to prevent presidents and elected officials from profiting from the crypto industry while in office.

The crypto sector has amassed tens of millions of dollars to spend on elections but still faces significant opposition, including from Democrats who argue that the ethics clause doesn't go far enough. Republicans have proposed new language to address these concerns, which would give state attorneys general more ability to bring lawsuits if they suspect a breach of ethics rules.

The banking sector is also opposed to the bill, citing concerns about stablecoins and the incentives offered by crypto companies that could lead to a loss of customers. Community bankers argue that allowing crypto companies to offer these incentives would pose a direct threat to their business.