Slow but Steady: Lawmakers Make Gradual Progress on Digital Assets Legislation

Lawmakers could face possible delays in creating clear rules for the cryptocurrency market. Senator Cynthia Lummis recently led the first meeting of the Senate Subcommittee on Digital Assets, which is a major step toward creating rules for cryptocurrencies. The subcommittee was formed to help create a set of rules that will support innovation while also protecting consumers.

“I’m excited that we can finally begin this important work on digital asset regulations,” Senator Lummis said at the meeting. “We’ve come a long way from when people were just starting to understand Bitcoin and stablecoins. Now, we’re ready to make progress. We’re in the early stages of bitcoin and digital assets. If we are going to pass any legislation, we’ll need bipartisan support. Today’s hearing was the first step.”

Although this meeting was a big step, it showed that lawmakers are still moving slowly when it comes to passing important laws. The proposed rules include the Lummis-Gillibrand Responsible Financial Innovation Act, which focuses on market structure, and the Genius Act for stablecoins. These laws aim to keep the U.S. dollar competitive in the digital world while making payments faster and cheaper.

Lummis said,

“Many members of the Senate are still trying to wrap their heads around ‘what is a Bitcoin;’ ‘what is a digital asset,’ ‘what is a stablecoin. I hope we can get the legislation to President Trump for his signature this year.” (SIC)

However, lawmakers are currently focusing on stablecoins rather than broader rules for the whole market, which shows they are taking a careful approach. The Genius Act is expected to protect the U.S. banking system and create equal rules for stablecoin regulations at both the state and federal levels.

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This slower pace of action is in contrast to the earlier promises made by newly appointed “Crypto Czar” David Sacks, who had said he would push for crypto reforms within the first 100 days of President Trump’s second term. But the meeting showed that lawmakers are proceeding at a slower pace.

Despite these delays, there is still hope that progress will be made. Senator Lummis said she was confident that rules for stablecoins could be ready soon, which could lead to more legislation in the future.