The regulatory landscape for cryptocurrencies in the United States is shaping up to be more explosive than anticipated. Just days before a crucial hearing in the Senate, over 75 amendments have been introduced on the bill regarding the structure of the crypto markets, revealing the magnitude of political disagreements surrounding stablecoin yields, DeFi, and ethical issues.
An Avalanche of Amendments Before a Decisive Vote
The Senate Banking Committee is set to review the draft of the future crypto regulatory framework this week. Ahead of this, an internal document indicates that over 75 amendments have been proposed by both Republican and Democratic senators. Together, they cover over a hundred potential points, extending beyond just the technical aspects of the market.
Among the most contentious proposals are those aiming to completely ban the payment of yield on stablecoins, strengthen transparency requirements for yield-generating products, and redefine the legal status of mixers used for on-chain privacy.
In parliamentary practice, many of these amendments are unlikely to pass. A lot of them serve primarily as negotiation tools or political markers before last-minute compromises.
The Yield of Stablecoins: A Central Point of Friction
The most inflamed issue remains that of yield. Several amendments directly target the section of the bill that regulates rewards linked to stablecoins. One of the most discussed would remove a key word from the current draft, significantly expanding the ban on any form of interest or yield related to holding stablecoins.
Other proposals go even further, calling for a complete removal of all remuneration, regardless of the setup. In the background, a persistent fear lingers: the risk of stablecoins becoming quasi-banking products without the prudential safeguards of the traditional financial system.
Ethics and Unresolved Conflicts of Interest
Beyond technical issues, the political dimension remains ever-present. Democrats continue to criticize financial ties between the president and various crypto projects, arguing that it undermines the credibility of the regulatory framework.
Amendments explicitly mention ‘anti-corruption’ provisions and obligations to disclose the financial interests of public officials involved in crypto. At this stage, no clear bipartisan compromise has emerged on this issue, despite ongoing behind-the-scenes discussions.
Another sensitive topic is the governance of regulators. Amendments highlight the absence of Democratic members in agencies supposed to be bipartisan, a situation deemed problematic for the legitimacy of future crypto-related decisions.
A Structuring Text, Yet Still Fragile
The ‘markup’ session scheduled for this week will be crucial. Senators will debate the amendments, vote on their adoption, and decide if the bill can progress to the next stage. Meanwhile, the Agriculture Committee, also responsible for the subject, has postponed its own review until the end of the month.
One thing is certain: if this bill is to lay the groundwork for a sustainable framework for crypto in the US, it must first survive this battle of amendments. Between yield, DeFi, ethics, and political rivalries, the path towards clear regulation is far from being cleared.
