Today in Crypto: The Senate Banking Committee cancelled its Thursday markup of a crypto bill, the Zcash Foundation said a regulatory probe into its privacy-focused token has been closed and Galaxy warned a crypto market structure bill could expand the Treasury’s authority to freeze transactions.
Senate Banking cancels Thursday crypto bill markup
The US Senate Banking Committee on Wednesday cancelled its markup of a crypto market structure bill slated for Thursday, with its Chairman Tim Scott saying bipartisan negotiations need to continue to garner support.
“I’ve spoken with leaders across the crypto industry, the financial sector, and my Democratic and Republican colleagues, and everyone remains at the table working in good faith,” said Scott. “This bill reflects months of serious bipartisan negotiations and real input from innovators, investors, and law enforcement.”
Scott did not disclose when, or if, the markup would be rescheduled. The delay comes after the Senate Agriculture Committee on Monday punted its markup of the crypto bill, also originally slated for Thursday, to Jan. 27, citing the need to garner more support.
The bill would define how the Securities and Exchange Commission and the Commodity Futures Trading Commission would police the crypto market, and both the Banking and Agriculture Committees need to advance the bill as they respectively oversee the SEC and CFTC.
Several major crypto firms and lobby groups, including Coin Center, a16z, The Digital Chamber, Kraken and Ripple, have backed the Senate’s bill, but major lobbyist Coinbase dropped its support with CEO Brian Armstrong saying it “would be materially worse than the current status quo.”
Zcash Foundation says SEC closed probe into privacy coin
The foundation behind Zcash (ZEC) said that the US Securities and Exchange Commission (SEC) will not pursue an enforcement action into the privacy coin after the end of an investigation launched in 2023.
In a Wednesday notice, the Zcash Foundation said the SEC “concluded its review” over a “matter of certain crypto asset offerings” and would not recommend enforcement actions or changes. According to the foundation, the regulatory probe started in August 2023 after it received a subpoena from the SEC.
“This outcome reflects our commitment to transparency and compliance with applicable regulatory requirements,” said the foundation. “Zcash Foundation remains focused on advancing privacy-preserving financial infrastructure for the public good.”
Over the past year under US President Donald Trump, the SEC has dropped several investigations and lawsuits into several high-profile crypto companies, signaling that the regulator would be softening on regulation and enforcement under the current administration.
Cointelegraph reached out to the foundation for additional details on the subpoena and investigation, but had not received a response at the time of publication.
Galaxy says Senate bill risks expanding surveillance
Galaxy Digital warned that a draft crypto market structure bill released by the US Senate Banking Committee would hand the Treasury Department sweeping new surveillance and enforcement tools, describing it as the biggest expansion of financial oversight authority since the US Patriot Act.
In a research note published Tuesday, Galaxy said the Senate proposal goes far beyond the House-passed CLARITY Act, particularly on illicit finance provisions. At the center of Galaxy’s warning is a new crypto-specific “special measures” authority.
The authority would allow the Treasury to designate foreign jurisdictions, financial institutions or entire classes of digital asset transactions as primary money-laundering concerns, giving it the power to restrict or condition certain crypto fund transfers. Galaxy compared this to tools created under the Patriot Act, noting that it could be applied broadly across offshore venues and transaction rails.
The Patriot Act is a law passed after the 9/11 attacks to enhance national security by expanding government surveillance powers, giving law enforcement new tools like easier wiretapping and tracking digital communications to combat terrorism. The law has faced significant controversy over civil liberties.
