House vote on crypto, stablecoin bills now delayed by a week

The House Financial Services Committee has pushed back a scheduled vote on legislation that would create a comprehensive regulatory framework for stablecoins and trading of cryptocurrencies in the U.S.

The committee debate and vote is now set for July 26, according to a scheduling note sent to offices on the committee that was reviewed by The Block. Politico was first to report the news.

During a hearing on digital asset legislation at the committee last month, several Democratic lawmakers signaled skepticism over the Republican-led effort, inviting an industry witness who argued that current securities laws are enough to govern cryptocurrencies in the U.S. While Republicans, if unified, can advance bills out of the House of Representatives on a party-line vote, in order for those bills to become law they need support from Democrats in the Senate, as well as acceptance from the Biden administration.

The House Agriculture Committee also holds jurisdiction over the market bill and is expected to hold its own debate and vote on that bill. The market structure legislation would grant the Commodity Futures Trading Commission more direct power over markets for digital assets deemed by regulators to be commodities — bitcoin being the largest — while directing regulators at the Securities and Exchange Commission and CFTC to draft a road map of rules for how a digital asset could transition from being treated as a security investment, with substantial financial disclosures required, to a commodity, which would require less disclosure on behalf of the token or project.

Though the postponement could be the sign of continued last minute negotiations and changes, Rep. French Hill, R-Ark., one of the authors of the stablecoins bill, said during an online event with the Atlantic Council earlier Monday that he hopes both bills will advance out of committee before the end of July.