White House Sets July September Deadlines for Federal Crypto Reform

The White House has established a definitive timeline for federal crypto reform, with pivotal deadlines in July, August, and September. These months are critical for finalizing regulations and delineating the jurisdictions between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) concerning digital assets. This development follows the U.S. Senate's passage of the Genius Act, the first significant piece of crypto legislation under the Trump administration. The Genius Act aims to provide a comprehensive regulatory framework for cryptocurrencies, addressing issues such as market structure and stablecoin regulation.

Insiders have disclosed plans to combine the stablecoin regulatory bill, known as the Genius Act, with the Cryptos market structure bill, the Clarifying Act. This bundling strategy is intended to streamline the legislative process and ensure that both bills are passed concurrently. The competition for influence over the regulatory framework is intense, with various stakeholders vying for control.

The Trump administration has approved crypto-backed mortgages, a decision that has sparked debate within the crypto industry. While some view this as an opportunity to integrate cryptocurrencies into the traditional financial system, others are concerned about the potential risks. The new policy mandates that Fannie and Freddie develop risk mitigation strategies and only accept crypto assets that can be verified on U.S.-regulated exchanges. This approach aims to balance innovation with regulatory oversight, ensuring the stability of the financial system.

Key U.S. Senator Tim Scott, the chairman of the Senate Banking Committee, has stated that the crypto market structure bill will be completed by September 30. This timeline is crucial for the House, as its progress on the bill depends on the condition in which it receives the legislation from the Senate. House Financial Services Committee Chairman Patrick McHenry has also indicated that the House will have its version of the crypto bill ready within two months. This coordinated effort between the Senate and the House reflects a growing consensus on the need for comprehensive crypto regulation.

The bundling of the Genius Act and the Clarifying Act is a strategic move to ensure that both pieces of legislation are passed together. This approach is designed to address the complex regulatory challenges posed by cryptocurrencies, including market structure and stablecoin regulation. The competition over cryptocurrency legislation is intense, with various stakeholders vying for influence over the regulatory framework. The Trump administration's support for crypto-backed mortgages adds another layer of complexity to the regulatory landscape, as it seeks to balance innovation with regulatory oversight. The coordinated effort between the Senate and the House reflects a growing consensus on the need for comprehensive crypto regulation, with key deadlines set for July, August, and September.