U.S. Crypto Bill Gains Momentum: Senate Vote Anticipated Early Next Year

The cryptocurrency market structure bill is back on track, with an expected Senate vote early next year. Despite a few hurdles, efforts to unify bipartisan support are in motion, particularly concerning the contentious area of decentralized finance (DeFi) regulation.

Key Takeaways

Coinbase CEO believes passing the bill by early next year will significantly improve the crypto landscape.
DeFi regulation remains a contentious issue, alongside expected opposition from some Democratic lawmakers.
Senator Tim Scott, Chair of the Senate Banking Committee, expects to start the markup process for the bill next month.

During a conversation with Fox Business on November 18, Senator Tim Scott announced plans to advance the crypto market structure bill in both committees, aiming for a Senate floor vote early next year.

Crypto bill

Previously, Scott mentioned a September deadline for the markup; however, he attributed delays to Democratic lawmakers, particularly Reuben Gallego, who proposed a controversial DeFi regulation that sparked backlash across the industry and threatened the bill's progress. In response, Jane Garza, a spokesperson for Gallego, clarified that taking the necessary time to craft a solid, bipartisan proposal should not be seen as stalling efforts.

After extensive lobbying from leaders in the crypto sector, divisions within Congress began to reconcile by late October. By November, the Senate Agriculture Committee—overseeing the Commodity Futures Trading Commission (CFTC) aspects of the bill—released a draft discussion paper that addressed feedback on the DeFi section, signaling a collaborative pre-markup process to integrate both committees’ drafts into coherent legislation.

Tim Scott eyes next month for crypto bill markup, ‘early next year’ for final passage

What Comes After the Markup?

Markups are pivotal in the legislative process as committees come together to critique proposed bills. This stage allows for amendments and refinements, ensuring that the text aligns with policy expectations. Once revisions are finalized, committees vote to send the bill for further debate and voting in the chamber.

The draft from the Senate Banking Committee focuses on the Securities and Exchange Commission (SEC) framework, emphasizing securities and investor protections, among other priorities. As of now, the draft reflects only Republican perspectives, with Democratic contributions still outstanding.

The potential for DeFi regulations to pose additional challenges during markup discussions remains uncertain. Coinbase CEO Brian Armstrong expressed optimism, highlighting a strong possibility that the bill could be approved by December, with President Donald Trump likely to sign it shortly thereafter. He remarked, “This would be a significant step forward in establishing clear rules for cryptocurrency in the U.S., benefiting all companies.”

However, cautions from Cody Carbone, CEO of the Digital Chamber blockchain trade association, indicate that successful passage hinges on the ability of committees to come together and produce a unified product.