US Targets September for Crypto Legislation

US lawmakers, alongside the White House, are determined to advance comprehensive legislation to regulate the cryptocurrency industry by the end of September. This intention emerged during a discussion with Senate Banking Committee Chair Tim Scott, Sen. Cynthia Lummis, and Bo Hines, Executive Director of the President’s Council of Advisers on Digital Assets. Recently, Lummis, Scott, and other senators unveiled principles to guide the upcoming bill discussions, highlighting the need for SEC exemptions for certain digital asset fundraising and customer fund protection during bankruptcies. Lummis expressed hopes to release a draft by August, aiming for a full review in September. The GENIUS Act, focusing on stablecoins, demands full backing by U.S. dollars or similar assets, mandates audits for issuers with significant market caps, and outlines foreign issuance protocols. It prohibits firms like Meta and Amazon from issuing stablecoins without meeting specific financial and privacy criteria. Concurrently, the Clarity Act seeks a clear regulatory framework, instructing the SEC and CFTC on crypto market oversight while ensuring digital asset firms maintain transparency with customers and safeguard funds. Despite some differences, the House and Senate are synchronized in their legislative pursuits, ensuring both stability and innovation in the U.S. crypto market.