Cryptocurrency markets require faster and clearer frameworks, but regulators are slow to make progress

The U.S. Senate’s cryptocurrency regulation bill faces an extension as Louisiana Republican Senator John Kennedy criticized the draft for its inadequate anti-money laundering (AML) and Know Your Customer (KYC) standards, thus delaying the timeline until early 2025. The bill aims to clarify rules for exchanges and stablecoins, but lacks widespread support from the industry, with 62% of companies skeptical of the compliance burden. Cryptocurrency market capitalization fell 12% in the second quarter of 2024 due to regulatory uncertainty, while the House proposed a more targeted alternative.