Senate Aims to Finalize Crypto Regulation by September 30

Senator Tim Scott, the chairman of the Senate Banking Committee, has announced that the U.S. Senate aims to finalize comprehensive legislation to regulate the cryptocurrency market by September 30. This timeline, while later than the August deadline initially proposed by President Trump, is seen as a realistic and expedited schedule by Senator Scott. The legislation, known as the GENIUS Act, seeks to impose Federal Reserve-backed reserve requirements and prevent major tech companies from issuing their own tokens. The bill has garnered bipartisan support, including from Senator Cynthia Lummis and President Trump’s digital asset advisor Bo Hines.

Senator Scott made this announcement during a press event held in his committee’s hearing room on Capitol Hill. He stated, “I think that is a realistic expectation,” indicating a sense of urgency and determination to move the legislation forward. This new deadline is later than what President Trump wanted, as Trump had asked for the rules to be ready by the August break. However, it is still earlier than the end-of-year timeline that other lawmakers had mentioned before.

Just a day earlier, Senator Cynthia Lummis had expressed skepticism, suggesting that the crypto bills might not be ready until the end of the year. However, on Thursday, she supported Scott’s faster deadline and said, “Yes, sir. You’re the chairman, and we will do as you wish.” This shift in stance highlights the evolving dynamics within the Senate regarding the urgency of crypto regulation.

The legislation includes two major parts. One part is about the overall crypto market, which involves how it should be set up, who should be in charge, and what rules should apply. The other part is about stablecoins, which are digital tokens tied to regular money like the U.S. dollar. The Senate has already passed the GENIUS Act bill last week. Scott agrees with Trump’s view that the House of Representatives should approve that bill quickly and send it straight to the president. “I’ve been very clear that I think the president’s mandate of moving GENIUS Act immediately to his desk is in the best interest of the American people,” Scott said.

Bo Hines, the White House adviser, agreed with Scott and Lummis. He said, “I think it’s very clear you both understand what’s happening.” However, not everyone is ready to move that fast. House leaders have not yet said what they plan to do with the Senate’s bill. Representative French Hill, who leads the House Financial Services Committee, said that there are still things to fix between the Senate’s GENIUS Act and the House’s own stablecoin bill. This could slow things down.

Additionally, there’s another challenge: the Agriculture Committee also needs to approve the market structure bill. So far, it has not moved as quickly as the Banking Committee. This procedural hurdle adds to the complexity of the legislative process, potentially delaying the finalization of the crypto bill.

The Senate's push for a September deadline contrasts with the House's more cautious approach. Financial Services Chair French Hill has not committed to the same timeline, indicating potential delays and disagreements between the two chambers. The House has its own version of stablecoin legislation, which differs philosophically from the Senate's proposal. While the Senate's GENIUS Act favors a centralized regulatory approach, the House's bill offers more flexibility for state regulators and foreign issuers.

The differing stances between the Senate and the House reflect a broader debate over the appropriate regulatory framework for cryptocurrencies. The Senate's approach aims to bring the industry under federal oversight, while the House's bill leans towards a more decentralized regulatory model. This philosophical divide, coupled with procedural hurdles, could extend the legislative process into late fall.

The urgency to pass crypto legislation is driven by both political and economic factors. President Trump's call for an August signing deadline adds pressure, but the procedural complexities and differing visions between chambers may delay the process. The longer the delay, the more the U.S. risks losing ground to other regions, which are already implementing their own regulatory frameworks for cryptocurrencies.

The Senate's GENIUS Act, passed with rare bipartisan support, represents a significant step towards establishing a comprehensive regulatory framework for the cryptocurrency industry. However, the path to actual legislation remains uncertain, with political choreography between chambers and committees yet to sync. The outcome of this legislative process will have far-reaching implications for the future of the cryptocurrency market in the U.S. and globally.