Senator John Kennedy Voices Concerns Over Cryptocurrency Legislation
Senator John Kennedy (R-LA) has expressed significant concerns regarding the Senate’s readiness to advance crypto market structure legislation. His comments come as the Senate Banking Committee Chair, Tim Scott (R-SC), pushes for a September 30 markup despite concerns from Democrats and some Republicans.
During recent remarks, Kennedy stated, “I don’t think we’re ready. People that I talk to still have a lot of questions. I know I still have a lot of questions.” This statement reflects ongoing uncertainty among lawmakers about how to properly regulate the cryptocurrency market while addressing institutional readiness and risk management.
A Leap From Stablecoin Regulations to Broad Digital Asset Rules
The debate follows the July passage of the GENIUS Act, which outlined rules for dollar-pegged stablecoins. Kennedy, however, called the GENIUS Act a mere “baby step” compared to the comprehensive digital asset regulatory framework now under consideration. The proposed legislation would set rules across the entire ecosystem, moving far beyond stablecoins.
“As important as the GENIUS Act was, it was a baby step,” Kennedy said. “This [new legislation] is a full leap. And we’ve got to get it right.” Industry experts warn that fast-tracking such a comprehensive bill could have unintended consequences, especially given lingering uncertainties around compliance, risk management, and consumer protections.
Challenges Facing Crypto Regulation
Critics argue that traditional banks and financial institutions remain underprepared for rapid changes in digital asset regulation. Nitesh Mishra, co-founder and CTO of ChaiDEX, said, “Traditional banks aren’t ready for this shift.” He pointed to gaps in technology adoption, compliance standards, and risk management frameworks as key hurdles. Without addressing these gaps, rushing comprehensive regulations could destabilize the broader financial system.
Meanwhile, Democrats and other detractors continue to push back on what some perceive as a rushed legislative process. Tim Scott remains optimistic, but with Republicans holding only a narrow majority, bipartisan support is critical. Scott estimates that somewhere between 12 and 18 Democrats may support the bill, a lower count than those who backed the GENIUS Act.
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Future Outlook for Crypto Legislation
While the Senate evaluates its readiness for sweeping cryptocurrency reforms, the slow and careful approach may ultimately prove essential to creating a stable and secure regulatory framework. With ongoing debates, millions of dollars in lobbying efforts, and a clear need for bipartisan cooperation, the future of U.S. cryptocurrency regulation remains uncertain but highly anticipated.
