15-05-2025
Crypto Legislation Is Not Dead, But It Needs An Economic Boost
WASHINGTON, DC - APRIL 09: U.S. Sen. Ruben Gallego (D-AZ) speaks at the American Bankers ... More Association's Washington Summit at the Walter E. Washington Convention Center on April 09, 2025 in Washington, DC. The Summit from April 7-9 gathers bank leaders from around the United States to hear about key policy issues from lawmakers and comes after Trump's reciprocal tariffs on around 90 countries took effect. (Photo by)
Crypto policy is a bipartisan issue, but the current standoffs over stablecoin and market structure legislation are clearly along partisan lines. Political theater aside, the failure of the Senate Guiding and Establishing National Innovation for U.S. Stablecoins Act, and the derailment of the joint House Financial Services and Agriculture Committee market structure hearing last week was a spectacle that consumers of digital assets watched with bated breath.
The various positions are limited in scope, when you consider the needs of rural, urban, main-street consumers.
Democrats want guardrails to ensure that legislation does not enable a money grab by President Trump's family and expand anti-money laundering rules.
Republicans want to fast track legislation to jumpstart industry growth and foster global competitiveness.
Surely compromise is possible. But what has been absent from the tumultuous negotiations around the stablecoin and market structure legislative packages are specific provisions to spur local economic progress.
As policymakers regroup, and debate resumes, Democrats and Republicans could find common-ground, while also giving a nod to the largest adopters of crypto. Offering up amendments to create a pathway for the small, banking establishments that working class and young consumers trust - Community development financial institutions and Minority Depository Institutions - could be the jolt lawmakers need to reboot bipartisan deliberations.
CDFIs and MDIs are among the financial institutions most likely to deliver financial education and counseling, risk mitigation services, and also deploy tools to crypto consumers to help them combat scams and fraud. They are also well-positioned to extend access to capital to underserved crypto founders.
The House Stablecoin Transparency and Accountability for a Better Ledger Economy Act already has language that would allow credit union subsidiaries and service organizations to serve as issuers of stablecoins.
America's Credit Unions President and CEO Jim Nussle in April sent a letter of support to the HFS Committee.
'America's Credit Unions believes that credit unions should be able to offer consumers an entry point to purchase and use digital assets, including stablecoins. Credit union members trust their credit unions to provide necessary financial services, and the ability to provide new financial services products is needed for credit unions to fulfill their mission,' he stated.
Time is of the essence. The House Financial Services Committee will hold full committee markups next week. The crypto market structure bill, which was just introduced in draft form last week, may be on the schedule.
U.S. Senator Ruben Gallego (AZ), who serves as Ranking Member on the Senate Banking Digital Assets Subcommittee, recently said discussions that could lead to another vote on the GENIUS Act are underway.
'I don't think it's a ways off, but I don't think it's immediate either' Senator Gallego said in a media interview.
Consumers, households, founders will suffer the consequences of Washington inaction on stablecoin and market structure frameworks. Bipartisan economic solutions, instead of partisan stalemates, are possible in this unique moment.
