A new deadline has emerged for a comprehensive bill aimed at regulating the cryptocurrency market at the federal level in the US. White House crypto advisor Patrick Witt stated that they aim to pass the broad crypto regulation by July 4th. Speaking at the Consensus conference in Miami, Witt indicated that the Senate could advance the bill in June, leaving enough time for the House of Representatives to approve its own version.
Witt also emphasized the symbolic significance of this date for the US. Because July 4th is the country's Independence Day, he stated that passing the crypto legislation by this date would be "a great birthday present for America." Passing such legislation as the US approaches its 250th anniversary is seen as a historic turning point for the crypto sector.
June timeline emerges in the Senate
For the past year, the US Senate has been working on a bill that would regulate the crypto sector at the federal level for the first time. The main goal of the bill is to clarify the sharing of authority over crypto assets. In this context, the goal is to separate the areas of responsibility between the Commodity Futures Commission and the Securities and Exchange Commission.
The crypto market has long complained about regulatory uncertainty in the US. Many companies are demanding clearer rules on which assets are considered securities, which products fall under the category of commodities, and which institution has jurisdiction in which area. Therefore, the progress of the bill is being closely followed not only as a political development but also in terms of the future of the sector. The House of Representatives had previously passed its own version of the bill. However, differences are expected between the text that will emerge from the Senate and the House version. Therefore, the two chambers will need to reconcile the texts. According to Witt's statements, the White House believes that the July 4 target is still achievable if the Senate process progresses in June.
Stablecoin rewards and ethical debates on the table
One of the most important points of disagreement in the bill was stablecoin rewards. In the discussions in the Senate Banking Committee, how to handle the return or reward-like structures provided to users in stablecoin products came to the fore. The compromise text published last week reportedly largely resolved the deadlock on this issue. However, some trade groups representing the banking sector argue that the language used is still insufficient. It is stated that the Senate Banking Committee could move to consider, amend, and vote on the bill as early as next week. Nevertheless, the bill faces more than just technical regulatory issues. Recently, ethical debates have also become central to the process.
Some Democratic senators have expressed concerns about President Donald Trump and his family's connections to the crypto sector. The fact that Trump and his wife Melania Trump were involved in memecoin projects before their inauguration, and that the Trump family was involved in the World Liberty Financial DeFi and stablecoin project, has strengthened the Democrats' demand for ethical provisions.
Speaking at the Consensus conference, Democratic Senator Kirsten Gillibrand stated that the bill would not be supported without ethical regulations. This statement indicates that for the crypto bill to pass the Senate, consensus is needed not only on market structure and stablecoin rules, but also on limits regarding the crypto activities of public officials.
The White House is optimistic about reaching a compromise
Patrick Witt said that talks with the Democrats have been progressing well recently. According to Witt, the Democrats are consistently advocating that the ethical language to be drafted should not target a specific family, a single politician, or a particular individual. The White House advisor stated that they are close to reaching a compromise on this issue and that the remaining topics can be closed. Witt argued that the rules should be written broadly, applying to everyone from the current president to a new intern working on Capitol Hill. According to him, the problem is not that the Presidency is included in the scope of the regulation; it is that the regulation is being drafted in a way that targets a single person or a specific office holder.
