After a month-long break, the US Congress resumes its work, which includes legislative initiatives in the cryptocurrency field.
Review of Cryptocurrency Market Structure
One of the first agendas for Republicans will be to pass a bill establishing crypto market structure. In July, Republicans in the House passed the Digital Asset Market Clarity (CLARITY) Act with support from 78 Democrats. It was sent to the Senate for further amendments and debate. Wyoming Senator Cynthia Lummis, an outspoken advocate for less restrictive and clearer cryptocurrency regulations, is one of the leading voices calling for the establishment of market structure. During an August conference, Lummis speculated that the Senate Banking Committee would pass its version built on the CLARITY Act by the end of September.
Appointment of New CFTC Chair
Starting Wednesday, Caroline Pham, a Republican, will be the sole remaining commissioner and acting chair of the Commodity Futures Trading Commission (CFTC) following the departure of Kristin Johnson. Johnson had announced her intention to resign before 2026. Pham stated she would move to the private sector if the Senate were to confirm Brian Quintenz. However, at the time of publication, Quintenz's confirmation was not guaranteed, as the Senate had delayed a vote on his nomination at the request of the White House before the recess.
CBDC Ban Proposal in New Defense Bill
The House successfully passed the Anti-CBDC Surveillance State Act in July with slim Democratic support. However, Republicans are exploring alternatives to this bill. In August, the Rules Committee shared a revised version of HR 3838, which includes a provision to ban the Federal Reserve from issuing a digital dollar—one of the core tenets of the Anti-CBDC Surveillance State Act. It remains unclear which bill, if any, will have enough support to pass through Congress without amendments.
With the return of the US Congress, important discussions and potential changes in cryptocurrency market regulations and digital assets are expected, which could significantly impact the sector.
