Today in crypto, a US Senate committee released a crypto bill, the US allowed crypto funds to participate in staking, and the Bank of England opened consultations on its proposed stablecoin framework.
Senate Ag Releases Crypto Market Bill
The U.S. Senate Agriculture Committee released its long-awaited discussion draft of crypto market structure laws on Monday, moving Congress closer to passing legislation outlining how the crypto industry will be regulated.
The draft included brackets around sections of the bill that lawmakers are still negotiating, and Democrats said the committee lacked jurisdiction over certain aspects of it and were interested in working with the Senate Banking Committee to “address issues related to non-controlling blockchain developers and blockchain service providers.” »
The bill seeks to define limits on the power of the Commodity Futures Trading Commission and the Securities and Exchange Commission to regulate crypto. The Agriculture Committee has jurisdiction over the CFTC, and the Senate Banking Committee is leading parts of the securities law bill because it oversees the SEC.
Democratic Sen. Cory Booker, who helped spearhead the plan with Republican Agriculture Chairman John Boozman, said the discussion plan would “give the CFTC new authority to regulate the cash market for digital products, create new protections for retail customers, and ensure the agency has the staff and resources necessary to oversee this growing market.”
US Opens Door for Crypto ETFs and Trusts to Earn Staking Rewards
The Internal Revenue Service (IRS), the nation’s tax collection bureau under the Treasury Department, has updated its guidelines for cryptocurrency exchange-traded products (ETPs) to include a safe harbor for trusts to stake digital assets.
Treasury Secretary Scott Bessent wrote in a Monday X article that the agencies issued guidance providing crypto ETPs “a clear path to stake digital assets and share staking rewards with their retail investors.”
According to guidance available on the IRS website, government agencies would allow crypto trusts to participate in staking, provided they are traded on a national securities exchange, hold only cash and “units of a single type of digital asset,” held by a custodian, and mitigate specific risks for investors.
“The impact on staking adoption is expected to be significant,” Bill Hughes, senior counsel at Consensys, said in a Monday X article.
“This safe harbor provides long-awaited regulatory and tax clarity for institutional vehicles such as ETFs and crypto trusts, allowing them to participate in staking while remaining compliant, Hughes wrote. “This effectively removes a major legal barrier that had discouraged fund sponsors, custodians and asset managers from integrating staking returns into regulated investment products.”
The guidelines follow the U.S. Securities and Exchange Commission’s (SEC) September approval of generic listing standards, which are expected to give the green light to cryptocurrency exchange-traded funds. The IRS and Treasury noted the SEC rule change as part of the updated guidance.
Bank of England launches consultation on stablecoin, final rules to come in 2026
The UK’s central bank is moving towards stable coin regulation by publishing a consultation paper proposing a regulatory framework for the asset class.
The Bank of England (BoE) on Monday published a draft regulatory regime for sterling-denominated “systemic stablecoins”, or tokens, which it said are widely used in payments and therefore potentially pose risks to the UK’s financial stability.
Under the proposal, the central bank would require stablecoin issuers to secure at least 40% of their debts through non-interest-bearing deposits with the BoE, while allowing up to 60% of short-term UK government debt.
The consultation document seeks comments on the proposed regime until February 10, 2026, with the BoE planning to finalize the regulations in the second half of the year.
As part of the proposal, the central bank suggested capping individual stablecoin holdings at £20,000 ($26,300) per token, while allowing exemptions from the proposed £10,000 ($13,200) for retail businesses.
“We propose that issuers implement holding limits per coin of GBP 20,000 for individuals and GBP 10 million for businesses,” the BoE said, adding that businesses could benefit from exemptions if higher balances are required in normal operations.
Regarding stablecoin support, the BoE has suggested that issuers considered systemically important could be allowed to hold up to 95% of their backing assets in UK government debt as they grow.
