The US Congress has returned from recess, and the long-awaited "market structure" regulations for the cryptocurrency market have taken center stage. According to Eleanor Terrett, a journalist who closely follows crypto regulations, the Senate Banking Committee is expected to begin formal deliberations on the current draft by the end of September, while the Senate Agriculture Committee is preparing to release its own draft, encompassing the CFTC's jurisdiction, soon.
Could be enacted by the end of the year
Wyoming Senator Cynthia Lummis, known for her pro-crypto stance, stated at the Wyoming Blockchain Symposium last month that she expects the market structure bill to be signed into law by President Donald Trump before Christmas. Lummis's prediction reinforced expectations that regulation will accelerate in the sector.
During the Senate's summer preparation process, the draft text was revised based on feedback from more than 100 stakeholders. Among the key areas of discussion are the protection of software developers (Section 1960) and the clarification of the distinction between "byproduct assets" and "digital commodities."
Trump Administration Takes Debanking Action
Meanwhile, the Trump administration has issued a harsh response to the "debanking" practices that have long been a source of controversy in the financial sector. The Small Business Administration (SBA) has ordered banks to reinstate customers who were illegally cut off and to correct related policies by December 5th.
SBA Administrator Kelly Loeffler stated that many institutions, including religious institutions and pro-life groups, are being arbitrarily denied banking services, saying, "This type of discrimination will no longer be tolerated."
According to industry sources, the SBA is considering revoking the status of some banks. This action could have devastating consequences for the institutions involved.
CFPB Backtracks
The Trump administration's actions were not limited to the SBA. The Consumer Financial Protection Bureau (CFPB) formally apologized for the oppressive practices against Credova, a "buy now, pay later" platform, during the Biden administration. CFPB General Counsel Mark Paoletta described these practices as "one of the most blatant examples of abuse of state power."
Paoletta admitted that the agency targeted Credova with methods similar to Operation Choke Point during the Biden administration.
As Congress prepares to take concrete steps for the crypto market, both clarification of the regulatory framework and measures taken against arbitrary practices in the financial sector are critical for the sector. Investors expect the regulations, which will be introduced by the end of the summer, to reduce market uncertainty and provide a long-term roadmap, particularly for US-based companies.
