Industry representatives viewed the proposed performance language in the crypto market structure bill on March 23 and 24. The Internet, at least X (formerly Twitter), was not happy, but it may not matter much.
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the narrative
We* have new language outlining how the Crypto Market Structure Bill could address the performance of stablecoins.
*Only a few people have seen the language, although it should then be published for public consumption and review.
Why is it important
Sen. Cynthia Lummis (R-Wyo.) said earlier this month that she expected a markup for the market structure bill — the hearing where lawmakers debate amendments and language before voting on a bill — in the second half of April. Lawmakers have taken the first step toward that margin with an agreement on legislation on the structure of the crypto market.
breaking it
Banking and cryptocurrency industry representatives viewed the proposed “agreement in principle” announced last week by Sens. Angela Alsobrooks (D-Md.) and Thom Tillis (R.N.C.) early last week, with cryptocurrency representatives meeting with legislative staff on Monday and banking representatives meeting with staff on Tuesday.
No one seems particularly happy with the deal. The language has not yet been made public, although it should come out next week. Concerns range from the possibility that the proposed language would require regulators to craft new rules on permitted activity to how it could restrict the yield balances of stablecoins.
The language is unlikely to undergo major revisions, although a person familiar said he expected there to be some minor changes. Many of the changes needed are just technical adjustments, they said.
Still, industry interests seem aimed at presenting some type of counterproposal on language. It remains to be seen how far that goes.
This week
- Congress is expected to be on its two-week Easter recess, although the ongoing fight over funding for the Department of Homeland Security could change things.
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