Senate Democrats’ Framework Boosts Hopes for Market Structure Deal
Republican, industry leaders are expressing hopes of a bipartisan agreement
Welcome to the Wednesday edition of the Crypto In America newsletter!
What you’ll read: Senate Dems’ crypto push sparks optimism, Kristin Smith joins the podcast, top stories this week.
The release of comprehensive market structure principles by Senate Democrats on Tuesday has sparked optimism among industry voices and some Republican leaders that bipartisan crypto market structure reform could have a path through the Senate.
A coalition of twelve Democrats, including Sens. Mark Warner (D-VA), Kirsten Gillibrand (D-NY), Raphael Warnock (D-GA), and Ruben Gallego (D-AZ), unveiled a detailed framework, signaling the minority party’s readiness to join what has so far been a Republican-led push to establish clear crypto market rules.
Sen. Cynthia Lummis (R-WY), a leading architect of the GOP’s efforts, praised the group for reaching across the aisle.
Industry leaders, like Paradigm’s VP of Regulatory Affairs, also appeared pleasantly surprised.
The Dems’ draft was based on seven key pillars that would clarify token jurisdiction, strengthen oversight of trading platforms and issuers, crack down on illicit finance and conflicts of interest, and give regulators more resources to enforce the rules, many of the same priorities Republicans have also emphasized.
The devil will be in the details when it comes to bipartisan agreement, particularly over how much regulation is appropriate. Republicans historically favor lighter-touch rules than their Democratic counterparts.
During the next few weeks, we will see if words turn into action and if bipartisan talks evolve to produce legislation both sides can agree on.
Market Structure: The Industry Perspective
On the podcast this week, the team brings you our final recording from our SALT series, where we sat down with Solana Policy Institute President Kristin Smith in Jackson Hole, Wyoming.
Kristin shared her journey from leading the Blockchain Association to SPI, reflected on crypto policy’s dark times, and unpacked the current DC regulatory landscape. We also covered the industry’s push for market structure, challenges with skeptical policymakers, de-banking issues, and what’s next for SPI after Congress finishes legislation.
Plus, candid thoughts on high-profile figures and cases, including Roman Storm, Jay Clayton, and SEC Chair Paul Atkins.
Watch this episode on all platforms here.
Midweek Recap
Here are some of the stories making headlines so far this week:
CBOE plans to launch ‘continuous’ Bitcoin and Ether futures with a 10-year expiration, pending regulatory approval.
Eric Trump will no longer join as a board director of World Liberty’s treasury firm Alt5 Sigma, reportedly to comply with Nasdaq listing rules.
Nasdaq files with the SEC to allow tokenization and blockchain listing of stocks.
Nasdaq plans to invest $50 million in Gemini in a partnership that will allow the exchange to offer Gemini’s custodial services to its financial institution clients.
The SEC’s Crypto Task Force announced it will host a public roundtable on financial surveillance and privacy on Friday, October 17.
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