US Senate Aims to Complete Crypto Regulation by September 30

US Senate Banking Committee Chairman Tim Scott has announced that the comprehensive cryptocurrency regulation bill, which includes regulations for crypto markets in the US, is expected to be completed by September 30. This timeline is later than President Donald Trump's targeted August but earlier than the year-end estimate provided by Senator Cynthia Lummis, who has been working on the legislation. Scott conveyed this new timetable to White House cryptocurrency advisor Bo Hines, emphasizing that it is realistic and that the stablecoin law, known as the GENIUS Act, which passed the Senate last week, should be swiftly approved by the House of Representatives.

Scott stated, “It is realistic to expect the market structure adjustments to be completed by the end of September. We are on track.” However, the House has not been as definitive. While the House has made progress on the Digital Asset Market Clarity Act, a market structure bill, it has yet to take a stance on the stablecoin regulation GENIUS Act. House Financial Services Committee Chairman French Hill indicated this week that there are still some remaining differences between the Senate bill and the House’s own bill, suggesting that a short-term compromise could be challenging.

Senator Lummis had previously predicted that all crypto regulations would be completed by the end of the year, while President Trump aimed for this process to be finished by the August recess of Congress. The passage of the GENIUS Act on June 17, with a decisive 68–30 vote, marks a significant step towards comprehensive cryptocurrency regulation in the country. The GENIUS Act aims to create a regulatory framework for stablecoins, which are cryptocurrencies pegged to the value of a stable asset, such as the US dollar.

The passage of the GENIUS Act has sparked discussions about the potential merger of the GENIUS Act and the CLARITY Act, which focuses on providing regulatory clarity for cryptocurrencies. House Representative Tom Emmer has expressed support for merging the two bills, which could result in a comprehensive law that addresses various aspects of cryptocurrency regulation. This merger would be a game-changer for the crypto industry, as it would provide a unified regulatory framework that could foster innovation and protect investors.

The Federal Housing Finance Agency has also directed Fannie Mae and Freddie Mac to develop proposals that consider a borrower's crypto holdings as part of the mortgage application process. This move indicates a growing recognition of cryptocurrencies as a legitimate asset class and could pave the way for further integration of digital assets into the traditional financial system.

The passage of the GENIUS Act and the potential merger of the GENIUS and CLARITY Acts represent significant milestones in the US's efforts to regulate cryptocurrencies. These developments could have far-reaching implications for the crypto industry, as they would provide much-needed regulatory clarity and foster innovation. However, it remains to be seen how these regulatory efforts will impact the broader cryptocurrency market and whether they will be sufficient to address the challenges posed by digital assets.