Senate Negotiations Stall Crypto Regulation Bill Amid Industry Backlash

Efforts to pass comprehensive cryptocurrency market structure legislation in the U.S. Senate have stalled due to partisan disagreements and complex regulatory issues. Senator Cynthia Lummis is resisting changes to a provision in the recently passed GENIUS Act that prohibits stablecoin issuers from offering interest payments, which has caused tension between banking and crypto industry advocates. Bipartisan negotiations broke down after a Democratic proposal was leaked, leading to sharp industry backlash and halting progress amid broader Capitol Hill distractions like the government shutdown. The bill aims to clarify regulatory oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), with Democrats pushing for stronger consumer protections and Republicans emphasizing innovation and regulatory clarity. Despite bipartisan efforts led by Senators Kirsten Gillibrand and Tim Scott, the legislation remains uncertain, with separate meetings planned between lawmakers and crypto executives to revive stalled talks. The crypto market has seen explosive growth, underscoring the urgency of establishing clear regulatory frameworks, but entrenched disagreements continue to impede the bill's passage.