Crypto Bill in Jeopardy? Senate Shifts Attention to Trump’s Housing Mandate
The Senate Banking Committee’s focus on US President Donald Trump’s affordability agenda could delay the approval of crypto market structure legislation, according to a report by Bloomberg.
The committee is likely to switch its attention from advancing the bill until late February or March due to the executive order signed by Trump that prohibits Wall Street investors from purchasing single-family homes.
The Affordability Agenda and Crypto Legislation
Trump signed an executive order on Tuesday meant to lower costs ahead of the US midterm election in November.
The order includes preventing institutions from buying family homes, which coincides with the Senate Banking Committee’s plans to prioritize affordability concerns over advancing crypto legislation currently slated for discussion.
The Crypto Bill and its Controversies
The bill seeks to outline how the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) would regulate cryptocurrencies.
However, a major lobbyist for the industry, Coinbase, revoked its support due to disagreements regarding provisions related to stablecoins and decentralized platforms.
The delay in crypto market structure legislation may last several weeks as the Senate Banking Committee shifts focus from cryptocurrencies towards addressing Trump’s affordability agenda. This could be the latest instance of a postponement, following the previous delays experienced by both the Banking and Agriculture Committees as they seek bipartisan support for the bill.
Election Implications
Republicans aim to pass policy victories prior to the midterm elections in November to help shape their agendas.
However, the latest Polymarket odds suggest that Democrats are ahead with a 78% chance of winning a majority in the House, which could potentially jeopardize Trump’s proposed initiatives.
Contract asking which party would win the House in 2026 (Source: Polymarket)
Concerns raised by DeFi Leaders
The unpredictable future of the bill has already sparked concerns among leaders within the decentralized finance (DeFi) sector. Crypto enthusiasts and businesses are keeping a close eye on the regulatory framework’s progress, given its potential impact on the entire cryptocurrency ecosystem.
Addressing bipartisan differences in the pending legislation, Republicans on the Senate Agriculture Committee have released their own draft version ahead of a scheduled markup on Tuesday. The bill doesn’t garner the support from panel’s Democrats, however.
During the ensuing markup session, Democrats will have the opportunity to file amendments to the bill. If approved by the Banking Committee, the bill would be forwarded to the full Senate, where both versions would ultimately be merged for further deliberations.
