Crypto bill in limbo as stakeholders ramp up recess efforts

A five-week wait on a crucial Senate vote on major cryptocurrency legislation has opened wide a window of opportunity for both advocates and opponents of the measure, which would flesh out in greater detail a regulatory framework for the still-nascent industry’s U.S. operations.

Just before the Senate adjourned for its summer recess earlier this month, Senate Majority Leader John Thune, R-S.D., punted to Sept. 15 a cloture vote on a motion to proceed to the bill amid lingering disputes and not enough time to resolve them.

The legislation is a 616-page Senate substitute amendment to a House bill that would set regulations for the operations oversight of digital asset markets.

The key sticking point is an ethics provision that would curb the ability of President Donald Trump and other public officials from profiting from crypto ventures. Other disagreements center on provisions that address illicit finance, law enforcement and oversight of crypto network developers, as well as a still-unresolved battle between crypto firms and traditional financial institutions over yield-bearing deposits.

But the crypto industry is bullish about the bill’s odds, amid strong backing from a Trump administration that views the measure as critical to maintain the U.S. standing as the market’s global leader. In fact, the administration isn’t even waiting for lawmakers to finish their work.