McHenry Projects Crypto Bill Passage by Memorial Day
Speaking on February 9 at the Ondo Summit in New York City, former House Financial Services Chair Patrick McHenry projected that a comprehensive crypto market structure bill could become law within months. He outlined an aggressive timeline, suggesting a finalized bill could reach the president's desk by Memorial Day. This follows White House advisor Patrick Witt's confirmation that President Trump has personally prioritized the legislation. According to McHenry, Senate action could even occur before Easter, setting the stage for a rapid push toward final passage and providing the digital asset industry with its most significant regulatory breakthrough to date.
Stablecoin Yield Remains Primary Hurdle in Negotiations
The central point of contention delaying the bill is the regulation of stablecoin yields. Witt, who is brokering negotiations, described the issue as the largest unresolved matter. Banking institutions, particularly community lenders, view yield payments on idle stablecoin balances as a direct threat to their traditional deposit funding models. In contrast, crypto firms argue that yield is a critical mechanism for driving user engagement and platform growth. While talks have defined clear red lines, Witt noted that a recent White House-brokered meeting produced “new areas of agreement,” including a broad consensus on banning deceptive marketing practices, such as falsely claiming stablecoins are FDIC-insured.
DeFi and Ethics Shape Final Legislative Push
Beyond stablecoins, the foundational role of decentralized finance (DeFi) is a key consideration. McHenry asserted that market structure legislation “doesn’t work without DeFi,” arguing that decentralization is the core driver of crypto's efficiency, transparency, and cost advantages over traditional finance. He cited tokenized lending products, which already offer lower costs than securities lending, as proof of market demand. While disagreements over ethics rules for public officials still loom, both sides signaled a path to a narrow compromise that would not ultimately block the bill's passage, clearing the way for lawmakers to focus on the core economic and structural components.
