The U.S. Senate is gearing up for a pivotal markup vote next week concerning the proposed crypto market structure bill, a move that could significantly reshape the regulatory landscape for digital assets. However, ongoing disagreements over ethics rules, oversight of decentralized finance (DeFi), stablecoin yield restrictions, and the need for bipartisan support cast doubts on the bill”s future.
Senate Banking Committee chair Tim Scott announced that he will bring the legislation to a vote on January 15, emphasizing that months of stalled negotiations must culminate in accountability, even without complete consensus among lawmakers. The bill closely aligns with the Digital Asset Market Clarity Act, which passed in the House last July and aims to clarify the regulatory framework for a majority of digital assets in the United States.
If the committee approves the bill, it will advance to the Senate floor, but failure in the markup could effectively halt its progress for the remainder of the year. There are concerns about whether the proposal can garner the necessary support to clear committee hurdles, especially given the requirement for 60 votes to overcome a potential filibuster.
Several lawmakers, including some Democrats and a few Republicans, have expressed apprehensions regarding the expedited timeline, pointing out that fundamental issues remain unresolved. These tensions have been present since 2025, when initial targets for passage were repeatedly missed, reflecting both the bill”s complexity and lawmakers” hesitance to engage in risky legislation as the 2026 midterm elections approach.
This week, discussions intensified as bipartisan staff and White House officials sought to finalize a Republican proposal that outlines several still-contentious issues. These include ethics rules associated with conflicts of interest, limitations on stablecoin yield products, quorum requirements for federal regulators, and provisions impacting the DeFi sector. The DeFi aspect has become particularly contentious, with crypto advocates arguing for protections for developers and proponents of open-source software, while Democrats raise concerns about potential risks related to money laundering and national security.
At its core, the proposed Clarity Act aims to delineate oversight responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), establishing criteria to classify whether a digital asset falls under the category of security or commodity. The response from the crypto industry regarding Scott”s decision to push for a markup has been mixed; some lobbyists caution that proceeding without bipartisan agreement could jeopardize the bill, while others advocate for a recorded vote to prevent a repeat of the Senate”s history of inaction on House-passed crypto legislation.
Compounding the uncertainty, the approaching midterm elections may deter Democrats from facilitating a bipartisan win for Republicans, particularly on legislation associated with former President Donald Trump, whose family”s reported involvement in crypto business ventures has raised ethical questions. Analyst sentiments reflect a growing belief that the bill may face increasing challenges as lawmakers shift into campaign mode, with some suggesting that final passage might be postponed until 2027.
As discussions continue, cryptocurrency companies, including Coinbase, are urging lawmakers to take decisive action, pointing to the regulatory clarity provided by Europe”s MiCA framework and jurisdictions like the UAE as evidence that the U.S. risks falling behind in the global crypto race. However, the latest Republican proposal may indicate that negotiations are reaching an impasse, making the upcoming vote a critical juncture for the bill”s future.
