Unstable Ground: Looming U.S. Crypto Rules May Lack Legal Backing

U.S. crypto legislation stalls amid partisan disputes and wavering industry support.

  • SEC Chairman Paul Atkins is pushing for crypto rules but warns they need a legal foundation to prevent future reversal, telling the Senate Banking Committee “We need a firm grounding in statute.”
  • Key U.S. crypto legislation, the Digital Asset Market Clarity Act, faces hurdles as negotiators grapple with stablecoin terms and Democratic concerns over illicit finance in DeFi.
  • Industry support for the final bill is fragile, with figures like Coinbase’s Brian Armstrong ready to withdraw backing, while Treasury Secretary Scott Bessent criticizes regulatory opponents.

In Washington D.C. on Thursday, Securities and Exchange Commission Chairman Paul Atkins emphasized the urgent need for legislative backing for crypto rules during a Senate Banking Committee hearing. However, he stressed that any rules his agency issues now could be erased by a future commission vote without a supporting law.

- Advertisement -

Atkins testified that his “Project Crypto” agenda aims to provide regulatory clarity using the SEC’s existing authority. Consequently, he argued that congressional action is still essential to solidify these policies and make them “future-proof.”

Meanwhile, the major crypto market structure bill, the Digital Asset Market Clarity Act, remains stalled in the Senate despite having passed the House last year. Senate Democrats, including negotiator Mark Warner, insist the final version must safely address illicit finance risks in decentralized finance.

“We’ve got to make sure that we don’t set up a regime that allows bad actors or carves out enforcement,” Warner said. President Donald Trump’s business ties to the crypto industry have also been cited by Democrats as a complicating conflict-of-interest concern.

The clock is ticking for a compromise, according to House Financial Services Committee Chairman French Hill. Industry support is wavering, as even Coinbase CEO Brian Armstrong has signaled a willingness to pull support from a flawed final bill.

- Advertisement -

✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.

Previous Articles:

- Advertisement -

Latest News

AI Giants Pledge to Pay for Power Grid Strain

Seven top AI firms, including Amazon, Google, and OpenAI, have signed a White House...

X Money Launches Beta with 6% Yield, Shatner Joins

X Money has begun external beta testing, offering users cashback and a 6% annual...

Trump Backs Crypto Act, Citing ‘Meaningful Support’

Analysts from Clear Street suggest the crypto market may be at an inflection point,...

Bitcoin Tops Gold, Oil Amid Iran War Shock

Bitcoin (BTC) surged 12.1% to $73,419 since the U.S.-Israeli military action against Iran began...

Crypto Gains Stall as Bears, Struggling Miners Weigh

Derivatives and onchain data show a lack of bullish conviction, as 43% of Bitcoin...

Must Read

17 Best Audiobooks On Blockchain Technology For Beginners

If you're looking to dive into the world of blockchain technology, you're in for a treat. The field is rapidly evolving and the potential...
🔥 #AD Get 20% OFF any new 12 month hosting plan from Hostinger. Click here!