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Cardano (ADA) founder has publicly praised the latest draft of the U.S. cryptocurrency market structure bill, making negotiations over ethics clauses a crucial final variable for the bill's passage.
CoinGape reported on May 12 (local time) that Charles Hoskinson, the founder of Cardano, evaluated the latest draft of the U.S. cryptocurrency market structure bill as significantly improved compared to previous drafts. Hoskinson had previously criticized the bill for not having sufficient safeguards for the cryptocurrency industry. However, this time, he highly praised the leadership of Senate Banking Committee Chairman Tim Scott and those who have been working to improve the bill.
The core aspect that Hoskinson viewed positively is the decentralized finance protection clause. The latest draft includes safeguards related to decentralized governance, non-custodial staking, and distributed validator participation. CoinGape stated that this wording could provide an important shield for the DeFi ecosystem, developers, and network participants. The stablecoin reward structure was also partially maintained. However, cryptocurrency companies are not allowed to pay rewards on idle balances.
The Senate is coordinating remaining issues ahead of the markup on May 14. In particular, the ethics clause remains a key variable for securing bipartisan support for the bill. Eleanor Terrett, a cryptocurrency journalist, reported that Republican and Democratic senators are likely to hold a meeting today to discuss the ethics clause. She views the meeting's outcome as an early signal to gauge the positions of Senator Ruben Gallego and other Democratic members of the Senate Banking Committee.
Senator Kristen Gillibrand, a Democrat, also stated last week that an ethics clause is necessary for the cryptocurrency bill to pass. Although industry evaluations of the bill itself have improved, conflicts are inevitable in the final passage process if concerns about conflicts of interest in the political sphere are not resolved. CoinGape reported that senators are moving to finalize the ethics clause before the committee vote.
Faryar Shirzad, Chief Policy Officer at Coinbase, is reviewing the details of the latest draft, stating, "This text is clearly the result of strong compromise and the efforts of all parties. It is rare for a markup to be this interesting, but we look forward to the bill moving forward this week." Coinbase has also actively participated in negotiations on stablecoin yield language, where the crypto industry and banking sector were at odds.
On the other hand, the banking sector expressed dissatisfaction with the latest draft. Rob Nichols, CEO of the American Bankers Association (ABA), urged bank CEOs to contact senators, arguing that the current wording is not sufficient to protect bank deposits and prevent the risk of deposit flight. The U.S. cryptocurrency market structure bill is heading towards markup on May 14, with DeFi protection, stablecoin rewards, ethics clauses, and banking sector opposition intertwined.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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