Just as Donald Trump assured elites in Davos that a crypto market structure law was imminent, Washington shifted priorities. Bloomberg reports that the Senate Banking Committee has suspended work on the bill until at least late February or March. The administration itself triggered the delay: the White House demanded urgent action on housing affordability ahead of the Congressional elections.
Housing is the single largest expense for Americans and a key driver of inflation. Republicans already lost ground in last year’s elections due to rising prices and view this as a major political risk.
On January 20, Trump signed an executive order barring government backing for single-family home purchases by large institutional investors, directing the Treasury to define criteria for such entities. The Banking Committee has pivoted to implementing this order, even though large funds own less than 1% of the nation’s housing stock and the ban’s impact on actual prices is unclear.
The Coinbase Factor
Senate efforts to split jurisdiction between the SEC and the CFTC were already facing headwinds. Last week, the situation in the Banking Committee complicated further: Coinbase Global Inc. pulled its support for the bill, stalling work even before the agenda shift.
The current delay plays into the hands of lobbyists. Financial and crypto companies now have time to negotiate more favorable terms behind the scenes.
Committee Clash
While the Banking Committee focuses on real estate, the Agriculture Committee is trying to push its own rules. On Wednesday, they released a draft bill and scheduled a markup for January 27. Committee Chairman John Boozman stated the document is ready after months of work.
To pass a final Senate vote, proposals from both committees must be combined. With the Banking Committee now occupied by entirely different issues, the timeline for unified crypto market rules is once again pushed back indefinitely.
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