Delay in US Crypto Regulation Amid Severe Winter Storm

By: Eliza Bennet

The recent severe winter storm across the United States has led to significant delays in the congressional activities surrounding the regulation of digital assets. Key discussions that were scheduled within the US Senate Agriculture Committee concerning the crypto market structure have been postponed due to the adverse weather conditions, which resulted in closures of government offices, including the Senate.

Initially scheduled for early this week, the markup for the Digital Commodity Intermediaries Act, aimed at clarifying the regulatory landscape for the Commodity Futures Trading Commission (CFTC) with respect to digital assets, will now take place on Thursday. This delay not only affects legislative processes but also poses potential interruptions to planned regulatory activities at the federal financial agencies such as the CFTC and the United States Securities and Exchange Commission (SEC).

In alignment with the legislative delay, the CFTC announced a postponement of a joint event with the SEC designed to address harmonization between the two agencies regarding crypto oversight. Initially intended for early this week, the discussion led by CFTC Chair Michael Selig and SEC Chair Paul Atkins is now moved to Thursday. This collaborative dialogue is a crucial step toward establishing a cohesive regulatory framework for digital assets in an increasingly fragmented market.

The political dynamics around the bill also add another layer of complexity. Although the physical weather conditions may clear by Thursday, a congressional source highlighted a near certainty that the bill will not attract Democratic support. This partisan divide suggests that regulatory clarity in the digital asset space may continue to face significant political hurdles, notwithstanding the environmental factors impacting recent proceedings.