Winter Storm Could Delay Senate Ag Crypto Markup, Fed in Focus
Your guide to the week ahead in crypto and beyond
Welcome to the Monday edition of the Crypto In America newsletter!
What you’ll read: A massive winter storm could delay the Senate Agriculture Committee's market structure markup, the Fed is in focus with its rate decision and Trump’s potential pick to replace Powell, plus what else we’re watching this week.
It’s shaping up to be another uncertain week for crypto market structure legislation as the Senate Agriculture Committee’s markup could be delayed due to the massive winter storm that hit Washington D.C. on Sunday.
Due to heavy snow and icy conditions, the Senate preemptively canceled today’s voting session on Friday, meaning committee members will start trickling back into town Tuesday afternoon. The markup is currently scheduled for 3 p.m., but considering major flight delays and cancellations across the country, it may prove difficult for all members to get back in time for the vote. Crypto In America reached out to a committee spokesperson for comment but did not receive a response.
Adding to the uncertainty, the bill remains partisan: only Republican committee members are publicly supporting the bill, despite two additional weeks of bipartisan negotiations that delayed an original markup from taking place on January 15.
The industry itself has been largely supportive of the latest text, released last Wednesday, praising its protections for noncustodial software developers and infrastructure providers by keeping regulation narrowly focused on intermediaries rather than protocols or users.
Blockchain Association CEO Summer Mersinger said Democratic sticking points continue to center on some of those provisions related to the treatment of decentralized finance. “Some of the things around DeFi have more to do with an education gap than with a true policy position,” she told Crypto in America. “They just need a little more time to fully understand what we’re talking about when we’re referring to ‘DeFi protocol’.”
On Friday, new amendments were filed ahead of the markup, including the bipartisan Credit Card Competition Act (CCCA) from Sens. Roger Marshall (R-KS), Dick Durbin (D-IL), and Peter Welch (D-VT). The law would require large banks to allow at least two unaffiliated networks (other than Visa and Mastercard) on credit cards, giving merchants more choice over how transactions are processed.
The CCCA has existed in various forms since 2022, when it was first introduced by Marshall and Durbin. Since then, the sponsors have repeatedly attempted to attach it to must-pass legislation, without success. This time, though, the legislation has the backing of President Trump, who posted his support for the bill in early January as part of his push to cap credit card interest rates. However, crypto proponents worry that attaching an unrelated piece of legislation to an already complex bill could make members less likely to support it
It’s unclear whether the amendment will be voted on during Tuesday’s Senate Ag markup, and indeed, whether the markup will happen at all.
Stay tuned.
Fed In Focus This Week
Markets broadly expect the Fed to leave interest rates unchanged after Wednesday’s Federal Open Market Committee (FOMC) meeting, which follows a cumulative 75 basis points of cuts over the past three meetings that brought the federal funds rate down to 3.5%–3.75%, the lowest since 2022.
The numbers may remain unchanged for now, but Wednesday’s press conference with Fed Chairman Jay Powell could be notable for two reasons. First, it will be the first time the Chair has spoken publicly since releasing a taped statement earlier this month in response to reports that he is under criminal investigation by the Department of Justice for allegedly misleading Congress over the cost of the Fed headquarters renovation project.
Powell said he thought the move was political and tied to the Fed’s decision to change rates based on economic conditions, rather than President Trump’s preferences. In his remarks scheduled for 2:30 pm on Wednesday, many expect him to be hailed with questions about the investigation, as well as how he plans to defend the Fed’s independence from the White House.
Second, and this is where things could get interesting, some expect President Trump to announce his pick for the new Fed chair as soon as this week. Trump has been signaling for some time that an announcement is imminent, saying as far back as early December that he had made up his mind, though he appears to still be weighing multiple candidates.
However, in recent days, wagers on BlackRock executive Rick Rieder have overtaken other contenders on prediction markets like Kalshi and Polymarket, replacing former favorite Kevin Hassett after Trump said he preferred Hassett in his current role as his chief economic adviser.
The other two leading contenders are Fed Governor Christopher Waller and former Fed Governor Kevin Warsh.
👀 What To Watch This Week
Monday
Congress is out of session due to inclement weather, which means it’s a snow day in D.C. (and elsewhere!). Stay safe and warm out there!
Tuesday
10:00 a.m.: The CFTC and SEC will host a joint event to discuss the agencies’ crypto harmonization efforts. Crypto In America’s Eleanor Terrett will moderate a discussion between CFTC Chair Mike Selig and SEC Chair Paul Atkins.
10:00 a.m.: The Conference Board will release its January consumer confidence survey, helping us get a read on how consumers are feeling about the economy this month.
3:00 p.m.: The Senate Agriculture Committee is scheduled (for now) to hold a markup of its version of crypto market structure legislation.
Wednesday
2:00 p.m.: The Federal Reserve will announce its latest interest rate decision, and Chair Jay Powell is set to deliver remarks at 2:30 p.m. Markets have priced in no change in interest rates, after the 75bp of interest rate cuts spread over the last three meetings.
4:00 p.m.: Tesla reports quarterly earnings after the bell, with investors watching for any updates on its bitcoin holdings. The company currently holds about 11,500 BTC, making it the 13th-largest corporate holder.
Friday
8:30 a.m.: We’ll get a key inflation metric when the Bureau of Labor Statistics releases its December Producer Price Index (PPI).
Remember, new editions of the Crypto In America newsletter drop every Monday and Wednesday.
If you like what you’re reading, don’t forget to subscribe!
It’s Crypto winter as well.