Congress Returns, Market Structure Takes Center Stage
A Senate Banking markup is likely by the end of September
Welcome to the Labor Day Weekend version of the Crypto In America newsletter!
What you’ll read: The Senate returns to tackle market structure, while the Trump Admin delivers on debanking retribution.
Congress is back in session and market structure is about to take center stage.
The Senate Banking Committee spent August recess revising its discussion draft to reflect feedback from more than 100 stakeholder RFIs. An updated version is expected this month, with a markup likely before the end of September.
Meanwhile, Senate Ag is preparing to drop its own draft, which covers the CFTC half, in the coming days, according to a source familiar.
At the Wyoming Blockchain Symposium last month, Sen. Cynthia Lummis (R-WY) told Crypto In America she expects market structure signed into law by President Trump before Christmas.
Two big themes we’re watching as Senate and industry negotiations heat up: protections for software developers under Section 1960 and a clear framework distinguishing securities from commodities.
Join the fall’s first event bringing together top counsels, compliance officers, policy executives, and public officials in crypto. Don’t miss keynotes from leaders in the Senate, House, SEC, Treasury, and OCC.
Click here to secure your ticket and save 15% with code CIA15.
Trump Admin Hits Back on Debanking and CFPB Abuse
The Small Business Administration is making banks reinstate customers who were unlawfully debanked while the Consumer Financial Protection Bureau has shut down a years-long attack on firearms financier Credova, calling out “weaponized government power” under Biden.
Last week, the SBA’s General Counsel ordered lenders to remove ‘reputational risk’ from manuals, review past practices, reinstate affected clients, notify those previously denied service, and correct any policies that encouraged politicized debanking by December 5.
SBA Administrator Kelly Loeffler called out “myriad instances” of religious and pro-life groups and even Trump himself being debanked. “This kind of discrimination will no longer be tolerated,” she said.
A source told Crypto In America that Loeffler could revoke some banks’ SBA statuses to make an example of them, a move that would be devastating for any institution.
Meanwhile, CFPB Chief Legal Officer Mark Paoletta publicly apologized to buy now, pay later platform Credova, admitting that under Biden the agency ‘weaponized’ government power to target the company over its firearms ties using tactics straight from the original Operation Choke Point playbook.
Paoletta called it one of the worst abuses he has seen.
The financial rails of the future are being built on Avalanche. Just ask Citi, JP Morgan, Blackrock or Dinari. Avalanche, where capital connects.
Find out how Avalanche is accelerating global finance.
Remember, new editions of the Crypto In America newsletter drop every Monday, Wednesday and Friday at 7AM EST.
If you like what you’re reading, don’t forget to subscribe!