The Cryptocurrency Market Act has made "substantial progress," aiming to establish regulations for the entire digital asset industry.

On December 12th, U.S. Senate Banking Committee Chairman Tim Scott stated that after meeting with top bank CEOs on Thursday, there has been “substantial progress” in pushing a large-scale cryptocurrency bill into law. Scott met with Brian Moynihan of Bank of America, Jane Fraser of Citigroup, and Charlie Scharf of Wells Fargo to discuss this landmark legislation. The bill aims to set rules for the entire digital asset industry and grant regulatory powers to agencies like the SEC and CFTC. This week, these three bank CEOs are expected to meet with senators to discuss cryptocurrency legislative proposals. The meetings are reportedly held separately twice—once with Democrats and once with Republicans—and both sessions were “cordial.” Insider sources reveal that the discussions covered topics such as yields, decentralized finance, and anti-money laundering measures. The banking association believes there are gaps that need to be filled in the GENIUS Act, which became law this summer. They state that the issue lies in the law’s insufficient restrictions on stablecoin issuers paying interest to holders, which could make these assets more attractive as stores of value and credit mechanisms, rather than just means of payment, thus “distorting market incentives.” Additionally, banking groups argue that the restrictions imposed by the GENIUS Act can be easily circumvented by exchanges, brokerages, and other related parties.