Congressional deadlock for farm, crypto bills fueling uncertainty

Editor's Note: This column was part of the August 13 Pulse sent to more than 13,000 email subscribers.Congress continues to delay taking action on the farm bill and separate legislation that would establish a regulatory framework for cryptocurrencies and digital assets. Those delays continue fueling what community bankers dislike most: Uncertainty..The Farm Bill stalled Aug. 6 in the Senate Agriculture Committee, less than two months before the current version of the legislation is set to expire. Failing to favorably report the bill stemmed from disagreements over the proposed delay to changes in the Supplemental Nutrition Assistance Program that shifted a portion of program costs to states. While Democrats called for a two-year delay, Republicans and the White House supported a one-year delay.The two sides would be wise to come to an agreement, as a new bill is needed amid the rise in bankruptcies over the past year. An estimated 315 farm bankruptcies were filed last year, up 46 percent from 2024. I am not optimistic an agreement can be hammered out by the end of September, especially after other SNAP-related disagreements over a new Farm Bill torpedoed its chances of passing in recent years. The stalled Farm Bill is only one example of how Congress is failing to provide certainty for community bankers. The Senate last week adjourned without holding a final vote on the Clarity Act, delaying approval until at least September. The legislation would establish a regulatory framework for cryptocurrencies and other digital assets, similar to the impact the Genius Act had for payment stablecoins last year. Regardless of whether the Senate approves the measure, taking a vote sooner rather than later would help bankers better plan for the future. The most important service Congress can provide community bankers is certainty. Recent inaction continues the federal government’s frustrating failure in doing so.