"Pass even if all Democrats oppose?"...US cryptocurrency market structure bill crosses Senate threshold

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With the US cryptocurrency market structure bill securing enough votes to cross the threshold of the Senate Banking Committee, a direct confrontation between Republicans and Democrats over the leadership of cryptocurrency regulation has begun in earnest.

CoinGeape reported on May 13 (local time) that Republicans on the Senate Banking Committee had secured enough votes to pass the US cryptocurrency market structure bill at the committee stage. Previously, Senator John Kennedy, whose support for the bill was uncertain, announced that he would vote in favor during the markup, putting the bill in a position to pass the committee even if all Democrats oppose it.

The Senate Banking Committee is dominated by Republicans. Senator Tim Scott, Chairman of the Senate Banking Committee, had previously stated that he would not proceed with the bill's markup until he secured the support of all Republicans. Kennedy stated that he would review Democratic amendments but that no ethics provisions would be included before the bill passes the committee. He explained that he believes Scott does not have jurisdiction to include such provisions in the bill.

Members of the Senate Banking Committee submitted several amendments ahead of the markup. Anti-crypto Senator Elizabeth Warren introduced more than 40 amendments. Warren also proposed preventing the Federal Reserve (Fed) from issuing master accounts to cryptocurrency companies, including Ripple. The Fed has already presented a plan for limited master accounts that can be issued to crypto companies.

However, bipartisan support remains a key variable for the bill to reach the Senate floor after passing the committee. Alex Thorn, Head of Research at Galaxy, believes that if some Democrats vote in favor during the markup stage, the chances of passing the full Senate increase. Thorn mentioned five Democratic senators who could support the bill, explaining that if all five support it, the likelihood of final passage could increase.

Democrats are signaling that they will not support the US cryptocurrency market structure bill without ethics provisions. Senator Angela Alsobrooks was mentioned as playing a key role in negotiating the stablecoin yield language between the banking and cryptocurrency industries. Republican Senators Cynthia Lummis, Thom Tillis, and Bernie Moreno met with Democratic Senators Adam Schiff and Kirsten Gillibrand the previous day to discuss resolving the ethics provisions conflict. These discussions are expected to continue until the markup.

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