šØ Glimmers of progress emerge in stalled crypto market-structure talks šØ
Multiple Capitol Hill sources tell PYMNTS that behind-the-scenes staff-level negotiations on the GENIUS Act (stablecoin) and the broader Crypto Market Structure Bill have re-started after a three-week freeze, with both parties trading new āred-lineā memos ahead of a possible March committee markup.
šKey points
š¹ Whatās on the table
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Dual-track approach: Senate Banking will mark up GENIUS first (week of 10 Mar); House Financial Services merges comprehensive market-structure language later in March
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State-federal hybrid: latest draft lets OCC issue national stablecoin charters while preserving NY BitLicense and Wyoming SPDI via opt-in reciprocityāa concession that brought 4 Democratic votes back
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Yield compromise: 1.5% annual interest cap on retail stablecoins; unlimited yield allowed for $5m+ accredited accountsālanguage drafted by Treasury to protect money-market funds
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DeFi carve-out clarified: protocols with no āidentified issuerā fall under CFTC light-touch registration, not SEC security-based swapsāwin for Silicon Valley VCs
š¹ Whoās talking
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Sen. Tim Scott (R) and Sen. Kyrsten Sinema (I) hosting twice-daily staff calls; House Chair McHenry and Ranking Member Waters agreed to pause public sparring until white-paper language is final
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White House counselās office joined last week; Trump crypto czar David Sacks signalled āflexibilityā on yield cap if Treasury gets real-time reserve API access
š¹ Industry freeze-thaw
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American Bankers Association flipped to neutral after Treasury-only reserve mandate was softened to 80% T-bills, 20% Fed repo
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Blockchain Association endorsed the new DeFi language, removing its āopposeā letter threat
šWhy it matters
š¹ Cloture math improving: 60-vote threshold now realistic: 13 Republicans + 7 Democrats + 2 Independents = clear path if March markup sticks; floor vote possible before Easter recess
š¹ Regulatory overhang relief: Final text would immediately stay SEC enforcement actions against stablecoin issuers and set a federal compliance template, unlocking $40B in pending institutional allocations
š¹ Market signal: Progress removes the āU.S. crypto banā tail-risk that has suppressed U.S. exchange volumes -18% YoY; expect basis-trade flows and IPO pipelines (Circle, Kraken) to re-accelerate
šÆConclusion: After weeks of Trump-vs-states stalemate, glimmers of compromise on yield caps, reserve mix and DeFi carve-outs have re-ignited momentum. If staff-level language holds through March markups, the U.S. could finally have comprehensive crypto market rules before Q2āending six years of regulatory limbo and setting the stage for the next institutional bull cycle.
https://www.pymnts.com/cpi-posts/sources-report-glimmers-of-progress-in-talks-to-resolve-conflicts-over-crypto-market-structure-bill