David Sacks calls crypto industry to order as Senate pauses crypto market structure markup

White House adviser David Sacks is urging the crypto industry to use a sudden pause in Senate action on a U.S. crypto market structure bill to close remaining gaps in the legislation.

While the delay has pushed back the committee’s timetable and left the next hearing date unspecified, Sacks said that passage of the bill remains as close as it has ever been and argued that the industry should treat the pause as an opportunity to resolve differences rather than walk away from the process.

Pause in markup after Coinbase withdraws support

The banking committee of the U.S. Senate was scheduled to markup its crypto market structure bill, but stated that the markup would not be scheduled. The committee chairman, Tim Scott, confirmed that the markup had been delayed, but he did not provide a specific date. The ruling was reached a few hours after Armstrong’s announcement that Coinbase would not assist with the current form of the bill.

Armstrong cited the clauses regarding rewards on stablecoins, tokenized equities, and what he described as an undermining of the Commodity Futures Trading Commission as justifications for not providing such support.

In this regard, Sacks wrote that market structure legislation has never been as near as it is currently, and that the crypto industry should take a break to address any outstanding differences. He explained that this is the moment to establish the rules of the road and shape the future of this industry, and offered the break in the schedule as an opportunity to finalize the negotiation. 

Scott asserted that he had had discussions with leaders across the crypto industry, the financial industry, and his Democratic and Republican colleagues, which remain on the table in good faith. He described the current market structure bill in a statement as the culmination of several months of bipartisan talks and practical efforts by innovators, investors, and law enforcement.

According to Scott, the idea behind the legislation is to provide consumers with clear rules of the road that would not only ensure national security but also establish the foundation for the future of finance in the United States.

The White House has reiterated its commitment to working with Scott, the members of the Senate Banking Committee, and industry stakeholders to pass bipartisan legislation on crypto market structure as soon as possible.

He referred to the proposed structure as being intimate. He challenged the industry to move forward and carve its own future with a clear path by participating in the debates rather than evading them.

Lummis signals disappointment as negotiations continue

Sen. Cynthia Lummis hailed Scott as a man who was determined to find common ground on the bill. In the meantime, she said that the present response of some sector of the industry is a pointer that they themselves are not prepared, and that this is the most disappointing thing to her.

Lummis clarified that she would demand considering the input of the industry players and collaborate with them to introduce a product capable of propelling their success.

The proponents of the bill have described its purpose as an attempt to establish a framework to regulate digital assets, including the specified roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission and regulations of both trading platforms and the issuance of stablecoins.

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