The White House Urges Swift Action on Cryptocurrency Legislation
The White House is calling on Congress to prioritize legislation regarding cryptocurrency market structure. While there is a sense of urgency to move forward with these regulations, the details of the proposed bills are still being ironed out by lawmakers and industry stakeholders.
During an industry event in Washington, D.C., Patrick Witt, the newly-appointed executive director of the President’s Council of Advisors on Digital Assets, emphasized the importance of advancing the legislation as a top priority.
Recently, Senate Republicans unveiled an updated draft of their crypto market structure bill, known as the Responsible Financial Innovation Act of 2025. This legislation differs from the CLARITY Act, which was passed by the House in July with bipartisan support.
Meanwhile, a group of Senate Democrats with a history of supporting cryptocurrency initiatives released their own wishlist for crypto market structure. The Senate Agriculture Committee is expected to release its own draft, which is crucial for moving the legislation forward.
Industry insiders have expressed overall satisfaction with the Republican draft, but there are concerns about the Agriculture Committee’s draft, particularly regarding exchange registration requirements.
The Democrats’ framework aligns closely with the Republican draft but includes a notable update on stablecoin regulation. The proposal suggests a prohibition on interest or yield paid by stablecoin issuers, including through affiliates.
While the GENIUS Act currently prohibits stablecoin issuers from offering yields directly, the Democrats’ proposal aims to close loopholes by including affiliates in the prohibition. This has sparked debate within the industry, with banks lobbying for stricter regulations.
Crypto lobbying groups argue that allowing exchanges and affiliates to offer interest to holders creates a level playing field and provides consumers with more choices. Coinbase, a major crypto exchange, is particularly concerned about the potential impact of the Democrats’ framework on their USDC rewards program.
Despite these challenges, Coinbase Chief Policy Officer Faryar Shirzad remains optimistic about reaching a consensus on market structure regulations. He believes that focusing on market integrity is crucial, and hopes that lawmakers will avoid revisiting previous legislation in the process.