The crypto market structure bill has been making its way through the legislative process, but according to Paradigm’s vice president of regulatory affairs, Justin Slaughter, it could take many years for the bill to be implemented due to a lengthy rulemaking process. Rulemaking involves individual regulators and agencies fleshing out the details of a law passed by legislators, which can include publishing proposed rules and seeking public comment.
The market structure bill has advanced to the Senate committee stage with bipartisan text and ongoing negotiations, and is set for a markup with the Senate Banking Committee. However, Slaughter predicts that it could still take nearly two presidential terms for all the rules to come into force, citing the 45 rulemakings required in the bill alone. He notes that the process of implementing this bill will likely run through the entirety of the next presidential term.
The crypto industry has long been asking for regulatory clarity from lawmakers, and the lengthy rulemaking process may delay the implementation of the market structure bill. Similar legislation, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act, has been slowed by rulemaking in the past. Slaughter notes that Dodd-Frank still isn’t finished today, and most of the non-CFTC rules were finished between 2013-2018, 3 to 8 years after passage.
Understanding the Rulemaking Process
Rulemaking involves individual regulators and agencies fleshing out the details of a law passed by legislators, which can include publishing proposed rules, seeking public comment, and issuing final regulations that have the force of law. This process can be lengthy and time-consuming, and may involve multiple iterations and revisions before the final rules are implemented.
The crypto market structure bill still has to pass before any rulemaking can start, and Slaughter speculates that this could also take a while. He notes that he has never seen a major bill that passed into law that didn’t die a few times before it ultimately came through, and that hope always springs eternal.
Implications for the Crypto Industry
The lengthy rulemaking process may have significant implications for the crypto industry, which has been seeking regulatory clarity from lawmakers. The delay in implementing the market structure bill may create uncertainty and unpredictability for businesses and investors in the crypto space.
However, Slaughter’s predictions also suggest that the rulemaking process may provide opportunities for the crypto industry to engage with regulators and shape the final rules. By participating in the public comment process and providing feedback on proposed rules, businesses and investors in the crypto space may be able to influence the final outcome and ensure that the rules are workable and effective.
Smart Tip for Readers
To stay informed about the latest developments in the crypto market structure bill and the rulemaking process, readers can follow reputable sources such as Cointelegraph and engage with regulatory affairs experts like Justin Slaughter. By staying up-to-date on the latest news and analysis, readers can better understand the implications of the bill and the rulemaking process for the crypto industry, and make more informed decisions about their investments and business activities. For more information, visit Here
