Congress Delivers Mixed Results for Crypto Industry Ahead of August Recess

Congress made progress on regulating the crypto industry before their August recess. The House Financial Services Committee advanced a bill to establish a regulatory framework for payment stablecoins, allowing new stablecoin issuers under certain conditions. The committee also approved a framework for crypto regulation, defining when a digital asset is a commodity or security. However, the Senate passed a defense funding bill that includes measures opposed by the crypto industry, such as establishing examination standards to prevent illicit use of cryptocurrencies and conducting a study on countering anonymous crypto transactions. The Senate bill will need to be reconciled with the House version in the fall.