Crypto Market Structure Bill Draft Sparks Industry Backlash—Calls for Urgent Revisions Grow Louder

Lawmakers just rolled out a crypto market structure bill—and the industry isn’t holding back. From decentralized firebrands to Wall Street hybrids, everyone’s got notes.

The Core Grievances

Token projects scream regulatory overreach. Exchanges argue the rules favor legacy players. Meanwhile, the SEC’s shadow looms—same old turf wars, just with fancier jargon.

The Irony Alert

Banks whine about ‘unfair competition’ from DeFi… while quietly filing patents for their own blockchain ‘innovations.’ Classic finance—blockchain for thee, but not for me.

The bill’s fate? Unclear. But one thing’s certain: the crypto lobby’s checkbooks just got a workout.

Crypto Market Structure Bill Draft Under Scrutiny

According to Crypto In America, the long-awaited market structure discussion draft presented by the Senate Agriculture Committee this week has left many in the industry expressing the need for substantial improvements before extending their complete backing. 

Led by Chairman John Boozman and Senator Cory Booker, the draft draws inspiration from the CLARITY Act, aiming to delineate the definition of a digital commodity while accentuating aspects related to customer protections, oversight by the Commodity Futures Trading Commission (CFTC), and self-custody protocols. 

However, the presence of blockchain-related language enclosed in brackets signifies ongoing deliberations among lawmakers, with significant sections pertaining to decentralized finance (DeFi) and anti-money laundering (AML) left vacant.

A figure from a leading crypto trade association articulated that while the bill marks a positive initiation, further amendments are requisite for industry-wide support. 

Notably, discussions suggest that the Senate Agriculture Committee may be awaiting deliberations from their Senate Banking counterparts, particularly concerning DeFi components falling under the purview of the Blockchain Regulatory Certainty Act (BRCA).

Expressing hope for clarity in the DeFi domain, DeFi Education Fund Executive Director Amanda Tuminelli emphasized the necessity for robust developer protections that distinctly differentiate centralized intermediaries from software developers devoid of custody and financial control over external assets. 

Acknowledging the iterative nature of a discussion draft, industry participants have demonstrated willingness to engage with legislators in refining the regulatory process.

December Markup For Merging Market Structure Drafts 

Anticipating positive collaborations, Digital Chamber CEO Cody Carbone conveyed eagerness to collaborate in advancing the legislative agenda. 

Concurrently, the Senate Banking Committee has disclosed two market structure drafts, primarily led by the GOP, with ongoing bipartisan negotiations hinting at a potential merger of the drafts upon mutual satisfaction. 

Chairman Boozman has articulated a commitment to an early December markup session, underscoring the legislative trajectory aimed at integrating both draft versions into a cohesive framework.

An unresolved clause in the Senate Ag draft proposes that the CFTC should nominate at least two commissioners post-consultation with the committee’s minority faction, potentially solidifying the necessity for minority seats within the commission. 

Key deliberations are scheduled, including the nomination hearing for Mike Selig, Trump’s nominee for the CFTC chair position. While the agency anticipates further nominations, the process remains underway without definitive names put forth for additional commissioner roles.

Featured image from DALL-E, chart from TradingView.com