National Defense Authorization Act May Include Crypto-Related Measures

The National Defense Authorization Act, which is currently being negotiated by the House and Senate, may contain measures related to cryptocurrencies in its final version. However, the two chambers have different legislative priorities, with House Republicans focusing on creating a regulatory framework for stablecoins and market structures, while the Senate's successful bills would establish new anti-money laundering regulations for digital asset businesses. The Senate's draft included an amendment to impose new AML requirements, which was not controversial and was included as part of a block of amendments. The House did not include a similar amendment in its draft, but there is a possibility of attaching bills passed by the House Financial Services and Agriculture Committees to the compromise draft.

The Senate's amendment for AML measures is likely to be included in the final NDAA draft, as it has received support from various perspectives in the industry and is non-controversial. However, it remains to be seen if the House will support it, as no equivalent legislation has been prioritized in that chamber. Discussions on the final NDAA draft will continue into December, and using it as a vehicle for passing crypto legislation is the best chance due to the tight floor schedule. The success of sponsors' attempts to attach their measures to bigger packages remains to be seen.