After Sen. Tim Scott, R-S.C., canceled a markup on legislation regulating cryptocurrencies, senators are vowing this is not the end of the legislation.
Scott canceled the markup after Coinbase, the largest U.S. digital asset exchange, announced its opposition to the bill.
"I think there is a way forward," said Sen. Mark Warner, D-Va., a member of the Senate Banking Committee.
Scott and pro-crypto Republicans now must make further amendments to the 278-page bill, which is designed to boost the industry, while also ensuring the bill will have Democrat support and getting skeptical Republican lawmakers on board.
The legislation includes a section that bans crypto firms from paying yield "solely in connection with the holding of a payment stablecoin," designed to address concerns raised by banks that have become a focus for lawmakers in both parties.
Negotiations will now continue on the bill, though it is unknown when another markup will occur.
"It's going to take a while to develop a plan on how to make another run at it," said Sen. Cynthia Lummis, R-Wyo., who has been an outspoken proponent of crypto.
"I'm not going to reach out to do it immediately. People need a chance to soak in what happened," Lummis added.
The toughest unresolved issue is whether crypto exchanges should be allowed to offer stablecoin rewards programs that pay an annual percentage yield, a dispute that has set the crypto industry against banks.
Democrats and several Republican senators seemed more aligned with banks rather than the crypto lobby, which Lummis blamed on derailing the bill.
Coinbase CEO Brian Armstrong told reporters while appearing Thursday on Capitol Hill that there is more consensus between banks and crypto exchanges than he believes, since both sides want to cut a deal.
Banks want legislation to pass because they want to curb existing stablecoin rewards programs offered by firms like Coinbase while crypto firms argue they need "regulatory clarity" by defining which tokens are securities and which are commodities.
Sam Barron ✉
Sam Barron has almost two decades of experience covering a wide range of topics including politics, crime and business.
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