What’s ahead: The Future of Crypto

Crypto Market Structure Bill Faces Setbacks in Senate

This week, the crypto sector was intensely focused on a proposed market structure bill, only to see the Senate Banking Committee withdraw it less than half a day before a scheduled vote. While the bill hasn't been scrapped entirely, its supporters faced significant disappointment, though a new markup could be on the horizon within a couple of weeks.

This article is part of State of Crypto, CoinDesk’s newsletter exploring the intersection of digital assets and government policy.

Signs of trouble for the bill appeared early in the week. Shortly after the draft was made public on Tuesday, skepticism was already circulating, with one observer bluntly suggesting the bill was doomed. Less than two days later, Senator Tim Scott, chair of the Senate Banking Committee, announced a delay for the markup session.

Although the committee’s bill is still alive, the markup is a crucial—though not insurmountable—step. For context, the GENIUS Act, which regulates stablecoins, faced several high-profile setbacks before ultimately passing last summer.

However, advancing market structure legislation has proven divisive. Committee members have debated how to handle stablecoin yields and whether to include ethics rules related to the president’s crypto interests.

Meanwhile, senators from a different committee objected to provisions that would grant legal protections to software developers, as revealed in a letter sent Wednesday and reported on Friday.

The crypto industry itself has voiced concerns, criticizing aspects such as the bill’s expansion of SEC authority and its approach to decentralized finance regulation.

“It appears that most key negotiators are close to reaching consensus,” said Ron Hammond, Policy and Advocacy lead at Wintermute. “Still, disagreements persist from senator to senator.”

Despite these challenges, Hammond believes the bill retains momentum.

“Given the range of domestic and international developments in recent months, it’s notable that this legislation is still considered viable in the current Congress,” he added.

The Senate Agriculture Committee is expected to unveil its own version of the bill and hold a markup soon, which could influence the direction of the overall legislation.

What’s Next for the Legislation?

The Agriculture Committee reportedly preferred that the Banking Committee move forward first, but if Agriculture acts before Banking, it may prompt the latter to proceed regardless of the bill’s status.

The Banking Committee is actively working on revisions, with Democrats hosting a call with industry stakeholders on Friday to restart talks.

Key developments to watch include the start of new negotiations and any signs of compromise on the main points of contention. All parties remain engaged, making another markup likely in the near future.

Further Reading

• Senate Banking Committee cancels crypto market structure markup
• Senate banking chairman Scott: Trump-tied ethics clash doesn't belong in his crypto bill
• Senators pitch more than 75 amendments for crypto bill, including on yield, DeFi sections
• Senate files again for major crypto bill with stablecoin-rewards compromise, DeFi protections
• The big crypto bill isn't dead, may return next month as Wall Street fight still looms
• How a battle with bankers tarnished crypto's market structure bill near the finish line
• Senate Democrats serious about crypto bill reboot, they said in call with industry
• Senate Democrats pursuing a Friday call with crypto industry on market structure bill
• Crypto developer protections don't belong in market structure bill, senators say
• Senator Lummis offers DeFi protections bill as broader market structure draft nears
• Tokenization firms reject Coinbase's crypto bill equities claims
• DeFi community sees ‘bad’ crypto bill’s collapse as win, not setback
• Crypto bill delay 'may ultimately be constructive' for final product, Benchmark says
• Coinbase pulls support from crypto market structure bill
• Coinbase pulls support for major crypto bill. Here's what it means for the industry
• Coinbase CEO Brian Armstrong says company opposed crypto bill to protect consumers
• This is what's (currently) in the way of U.S. crypto market structure bill harmony
• Senate Republicans race toward crypto vote on bill with uncertain Democratic buy-in
• Crypto crowd could still walk away from U.S. market structure bill if DeFi needs unmet

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