Cryptocurrency Market Structure Bill Rejected, but Hopeful? Will 7 Democrats Join Hands to Revive It?

▲ U.S., Cryptocurrency Regulation/AI Generated Image

After the cloture vote for the U.S. Cryptocurrency Market Structure Bill failed in the U.S. Senate, seven Democratic senators expressed their willingness for bipartisan renegotiation, aiming to keep the legislative process alive. While the bill's passage is delayed, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have gained regulatory dominance.

According to cryptocurrency media outlet Coingape on September 17 (local time), seven Democratic senators, including Kirsten Gillibrand, Cory Booker, and Mark Warner, issued a statement announcing their commitment to continue bipartisan dialogue for the bill's passage. Previously, the procedural vote for the bill in the Senate plenary session failed with 49 votes in favor and 50 against. The failure to secure the 60 votes needed to proceed with the bill's discussion caused a setback in the legislative schedule.

Democratic lawmakers characterized the outcome of this vote not as the bill's final demise but as growing pains in the negotiation process. They emphasized, "This week's vote is merely a temporary setback, not the end of important legislative work," and "Our commitment to passing the bill through bipartisan cooperation remains unchanged." They stated their intention to hold further discussions with Republicans to narrow differences surrounding issues such as ethical regulations regarding cryptocurrency holdings by public officials, consumer protection, and decentralized finance (DeFi) policies.

As the legislative clock in Congress stopped, the influence of financial authorities grew even stronger. Due to the failure of a comprehensive single regulatory bill, the SEC and CFTC are supervising the virtual asset market based on existing current laws. With no clear standards established for jurisdictional separation, major cryptocurrency companies and investors are still forced to rely on the administrative actions and litigation outcomes of regulatory agencies.

In the market, a cautious view is also being raised that passing the bill within the year might be difficult, given the tight congressional schedule ahead of the November midterm elections. Whether the Democratic lawmakers' declaration to resume dialogue can lead to actual bill passage will be a key test for institutional clarity in the U.S. virtual asset market.

[Article Key Summary]

-After the U.S. Cryptocurrency Market Structure Bill failed in a Senate vote of 49 to 50, seven Democratic lawmakers declared renegotiation.

-Democratic lawmakers characterized the legislative failure not as a collapse but as a temporary delay, and began coordinating issues such as ethics for public officials.

-While legislation is delayed, the SEC and CFTC have maintained regulatory dominance over the virtual asset market based on current laws.

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