House Republicans have recently unveiled a discussion draft of a market structure bill, but the spotlight this week has undeniably been on the Senate. Here, a largely bipartisan effort to advance stablecoin legislation has hit a significant roadblock.

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Unstable Movement

The Narrative

Stablecoin and market structure bills have emerged as two pivotal legislative measures that Congress aims to pass and send to President Donald Trump’s desk this year. Recently, a press conference featuring crypto and AI czar David Sacks alongside the chairs of the House and Senate committees laid out a rough deadline of ‘before the August recess’ for these discussions.

Why It Matters

Among these two bills, the stablecoin legislation was anticipated to be the more straightforward challenge. Focusing on a specific segment of the crypto sector, it contrasts with the broader implications of the market structure bill, which will set the framework for how the industry is regulated by federal authorities. Until just over a week ago, the stablecoin bill seemed to be progressing smoothly; however, recent developments have put the timing of its passage in doubt.

Breaking It Down

Despite the hurdles, no sources I consulted this week believe the Senate’s stablecoin bill—the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act—is dead. Lawmakers are reportedly back to negotiation rounds, potentially setting the stage for another vote as soon as next week, possibly even Monday.

The last Senate vote fell short after Democratic members expressed concerns about specific provisions related to national security and the overall stability of the financial system. Republicans have argued that the urgency surrounding stablecoin usage necessitates swift legislative action. Meanwhile, President Trump’s financial involvement with stablecoins has raised alarm, leading to proposed bills aimed at restricting the President and certain lawmakers from issuing or endorsing financial assets.

While a deal seemed imminent for Democrats to include the ‘End Crypto Corruption Act’ in discussions, lawmakers opted to proceed directly to a cloture vote, which ultimately failed with a 48-49 tally.

This failure was not strictly along party lines—while all Democrats voted against it, notable Republicans, including Josh Hawley and Rand Paul, joined them, highlighting the contentious nature of this legislative battle.

As discussions continue, it is essential to address that, while many individuals expect ongoing negotiations to produce results, the focus has largely shifted from the potential provisions aimed at curbing presidential involvement with stablecoins to considerations around foreign issuers and anti-money laundering measures.

Delays in stablecoin legislation could potentially hinder progress on the market structure bill, which is set to redefine regulations pertaining to digital assets and elaborate on how the Commodity Futures Trading Commission and Securities and Exchange Commission oversee cryptocurrencies. A draft of this market structure bill has recently been introduced in the House.

However, should the Senate advance the stablecoin bill soon, two sources indicated that it might not impede the progress of the market structure legislation.

Stories You May Have Missed

• U.S. Crypto Market Structure Bill Unveiled by House Lawmakers: As the title states, expect more updates in the coming weeks.
• New Hampshire Becomes First State to Approve Crypto Reserve Law: A significant development in state-level cryptocurrency regulation.
• Samourai Wallet Prosecutors Say Delayed FinCEN Disclosure Wasn’t a Brady Violation: Legal complexities surrounding the Samourai Wallet developers continue to unfold.

This Week

Tuesday

• 10:00 a.m. ET (14:00 UTC): A joint hearing on digital asset market structure was scheduled, but controversy led to a sole hearing on Trump’s crypto ties.

Thursday

• 10:00 a.m. ET (14:00 UTC): Celsius CEO Alex Mashinsky was sentenced to 12 years in prison after a guilty plea to securities fraud charges.

Elsewhere:

• (404 Media) Former National Security Advisor Michael Waltz inadvertently revealed the use of an unofficial messaging app that was later hacked.
• (The San Francisco Standard) Revelations that Jeffy Yu faked his own death for a memecoin venture have emerged.

If you have thoughts or suggestions for next week’s discussion or any other feedback, feel free to email me at [email protected] or find me on Bluesky @nikhileshde.bsky.social.

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See you all next week!