On September 5, the Senate Banking Committee released its long-awaited updated draft of the crypto market structure reform bill. This proposal comes amid significant political and market challenges raised by the World Liberty Financial (WLFI) token incident.
Overview of the Updated Bill
The updated bill was crafted after feedback from industry participants and lobbyists. A full Senate vote is expected in November or December, depending on political circumstances.
Impact of the WLFI Incident
The WLFI token launch on September 1, which fell from $0.3086 to $0.1671, represented a significant setback. Analysts warned that the incident might complicate the bill's passage, which requires support from seven Democratic votes due to criticism about its legitimacy.
Future of the Legislative Process
Negotiations between Republicans and Democrats become more complicated due to the fallout from the WLFI incident, which raises concerns among supporters of the crypto bill. Senator Mark Warner indicated that rushing to hold a markup might significantly decrease the chances for bipartisan legislation.
The WLFI situation has created additional challenges for cryptocurrency legislation, the success of which hinges on bipartisan support. The final version of the bill will continue to be developed, taking into account feedback from market participants.
