With Trump taking office, legal regulations on crypto money began to be formed. last year GENIUS It was approved but there was no follow-up. Trump, who wants to bring legal clarity to the cryptocurrency markets, wants to quickly complete the clarity bill in the Senate, but this effort faces various obstacles.
Crypto Law Concerns
These concerns are divided into two. the first one cryptocurrency concerns of players in the market, mostly US-based crypto companies. The second is especially Democrats’ concerns about expanded borders. Of course, neither the Democrats nor the Republicans as a whole want legislation completely in favor of cryptocurrencies.
The sweeping crypto market structure bill drew warnings from two members of the Senate Judiciary Committee this week. In a letter sent Wednesday to Senate Banking Committee Chairman Tim Scott and top Democrat Elizabeth Warren, Republican Senator Chuck Grassley and Democrat Dick Durbin criticized the inclusion of the Blockchain Regulatory Certainty Act (BRCA) in the newly released bill text.
So why are they bothered? BRCA is particularly relevant to the DeFi space. There are DeFi developers who do not control user funds and do not provide custody services, and these developers are provided with exemptions from money transfer laws under some conditions. The two Senators who oppose this complain that they were not consulted on such an important issue. The Senate Judiciary Committee is responsible for overseeing the Department of Justice, the Federal Bureau of Investigation, and the Department of Homeland Security.
“The Senate Judiciary Committee, which has jurisdiction over Title 18, was not consulted or given the opportunity to meaningfully consider the proposed changes in advance.
… Finally, this provision would also create a blind spot for state and local law enforcement and state district attorneys who rely on FinCEN registration information or parallel state law requirements to detect the flow of money in cases involving, but not limited to, routine money laundering, terrorism, drug and human trafficking.” – Objection Letter
What about the Cryptocurrency Clarity Law?
The 270-page updated draft was released this week. More than 70 amendments had been proposed by Thursday, and the draft is now in a greatly expanded form riddled with objections. Moreover, there are objections not only from crypto opponents but even from the names at the center of crypto. For example coinbase The CEO points out problems with DeFI, such as the elimination of stablecoin rewards, concerns about the role of the SEC, and more.
Bipartisan support is required for the bill to pass in the Senate. That’s exactly why the support of Senators Grassley and Durbin, which we mentioned in the first part, is so important. A simple majority is not enough for the bill to be passed by the Senate Banking and Agriculture Committees, combined and finalized, in the general assembly, that is, 60, that is, the support of 2 parties is required.
