Senate Banking Committee to mark up major crypto bill May 14

The Senate Banking Committee will hold a markup on May 14 to amend and vote on legislation intended to establish the first federal regulatory framework for the cryptocurrency industry.

This is the panel's second attempt after a January session was canceled when major exchange Coinbase withdrew support over how stablecoin rewards would be treated. Two senators released new draft language last week that negotiators say addresses that dispute, though banking trade groups contend the language “falls short” on key banking issues.

If the Banking Committee advances its version, it must be reconciled with a separate bill the Senate Agriculture Committee approved earlier this year. The agriculture panel advanced its measure without Democratic support. Democrats offered amendments to bar the president, vice president, members of Congress and certain federal officials from engaging in specified digital-asset transactions; those amendments were not adopted.

Democrats have pointed to President Trump’s crypto activities and potential conflicts of interest as a reason for withholding support on the agriculture-panel bill. Senator Kirsten Gillibrand, a lead negotiator on the Banking Committee text, has insisted there will be no deal without an ethics provision and has pushed for stronger consumer-protection language and provisions targeting illicit finance and terrorist financing.

After committee action, the full Senate would need to pass a final bill. Overcoming Senate procedural hurdles typically requires 60 votes to reach final passage. The House approved its own bipartisan crypto bill last year; if both chambers agree on a single text, the measure would be sent to the president for signature.

Lawmakers face a compressed schedule as the number of available voting days shrinks amid the run-up to midterm elections. Industry groups and other stakeholders are watching the process closely, with some arguing the current proposals do not adequately address banking concerns and others urging stronger consumer protections and anti–money-laundering safeguards.